Kolkata: Due to Covid-19 pandemic that has hugely affected the global markets, India’s Leather industry is tearing at an export loss of 1.5 billion. The leather complexes in Kolkata and Unnao in Uttar Pradesh has just received the permission to reopen.

India exports leather products worth dollar 5.5-6 billion annually. Countries like Italy, Germany and U.S has started sending enquires and are already negotiating for a lower price. The importers from U.S, UK, France, Italy, Spain and Germany have either cancelled their orders or have put them on hold. Payments are also being delayed by some of them. The loss is estimated to be of around 1.5 billion, claims Mr. Ramesh Juneja, Regional Chairman of Leather Exports. Mr. Juneja further said that most of the leather clusters in the country are closed. Also leather units In Kanpur and Tamil Nadu are not in function. Unnao has also just started the operations with 33% work force.

Also at the Calcutta Leather Complex in Bantala, exporters were not initially getting raw hides as trucks were not coming in but now since a lockdown has eased a bit, these raw hides are being supplied. Juneja further added that the clients from various countries are now sending business enquires but now only with certain negotiations. Also they are offering us lesser price, he stated.

Due to a freeze on industrial activities, the exporters are not able to commit to the orders. Mr. Mohammed Faizal, business development manager of a Kanpur based company parvez shoes said, “The migrant workers have left and so getting labourers is a real challenge. Since the units are closed we do not know what is the condition of the raw hides that are lying at the units.”


Ghosal, S. (2020, May 13). India’s leather industry stares at export loss of $1.5 billion. Retrieved from https://economictimes.indiatimes.com/news/economy/foreign-trade/indias-leather-industry-stares-at-export-loss-of-1-5-billion/articleshow/75710324.cms