Margins Of Leather Export To Fall

By Author: Aniket
Total Articles: 137
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The leather exports from the eastern part of the country probably may witness a 20-25 percent decline which may in turn hit the performance of allied industries such as leather glove, handbag and garment manufacturing as well.

SME leather exporters, who are already facing a decline in margins due to the instability in the rupee movement, will now have to ready themselves up to face many more ups and downs in the coming days. The lingering impact of recession is causing difficulties for small-scale leather goods exporters, especially those falling in the eastern region of India.

Exports of leather to plummet

According to regional chairman of the Council for Leather Exports (CLE), Paresh Rajda, the leather exporters from the eastern part of the country are likely to witnesses a 20-25 percent drop in their exports given the continuing impact of recession.

Leather export ...
... orders usually flow in 6 months in advance. However, the sector has been witnessing contraction in overseas orders, which is upsetting SME leather exporters in the region, Rajda further added.

The decline in margins of SME leather units may in fact affect the overall performance of the sector. The bleak export market will put in danger the growth of other allied sectors as well, like footwear, leather glove, handbag and garment manufacturing.

With margins projected to plunge in the future, SME leather exporters and manufacturers are suggested to exercise caution and think twice before making any strategic move.