Chennai: Prices of raw materials of leather products have shot up due to the lesser arrival of supply to the market which in turn will affect the profitability of the manufacturers.
However, the turmoil that the industry is undergoing has worsened the situation and it is difficult for both manufacturers and customers, said Mohamed Jahan from the Pallavaram leather cluster.
“Leather is a byproduct industry. The cattle are not slaughtered for their skin but for the meat. The end product is the skin, which ultimately results after slaughtering the cattle for meat,” he added.
Experts opine that the leather industry is undergoing a stormy period and is expected to worsen further if the leather manufacturers, are affected by the dearth of raw materials in the local market.
Rafeeque Ahmed, president of All India Skins and Hides, Tanners and Merchants Association, said, “Cost of raw materials has shot up due to the lesser arrival of supplies to the leather market. If this scenario of the ban on cattle continues, it will affect the profitability of the industry. The domestic markets, which largely produce leather products, will get affected too”.
He wanted the ban on the slaughter of ox and buffalo can be relaxed while noting that a ban on the slaughter of cows has been there for years.
When the domestic market is affected by the supply of leather from other states, the leather manufacturers, irrespective of their volume, have to depend on import of leather products from other countries. Now, the leather importing countries will have an upper hand, thereby affecting the local manufacturers.
