India’s Council for Leather Exports (CLE) recently said it will sign an agreement with Washington-based Footwear Distributors and Retailers of America and the United States Fashion Industry Association to tap emerging opportunities for Indian exporters there. Chairman Aqeel Ahmed Panaruna said CLE is undertaking vigorous marketing activities to achieve that.
From September 2020 onwards, Panaruna expects exports to normalise and despite the impact of the COVID-19 pandemic, there is still a huge opportunity for India as it is now a preferred sourcing destination for major markets in the United States and Europe, he said.
Export in the sector declined from $5.69 billion in 2018-19 to $5 billion in 2019-20.
“Our major markets of Europe and USA (to which 70 per cent of our exports are directed) were severely affected by COVID-19. Many buyers are filing bankruptcy which is a huge concern, leading to cancellation of export orders. The exporters are facing difficulties on account of such export order cancellations because ECGC coverage (insurance) is not extended for pre-shipments,” he said.
“Hence, there is a need to evolve an ECGC (Export Credit Guarantee Corporation) policy to extend coverage for pre-shipment losses also caused by the pandemic and natural calamities,” he was quoted as saying by a news agency.
He expects recovery in exports growth from this month, but if the lockdown continues, there may be further decline in outbound shipments.
Recently, CLE participated in the virtual B2B meetings with Korean and Vietnamese entrepreneurs and buyers. The council is also in touch with the EU, the UK and Russian markets. It plans to hold virtual exhibitions with Russian buyers on July 20 and 21 and with Peru on August 5 and 6.
