Indian state Bengal’s leather sector faces raw material shortage

The leather industry in the eastern state of West Bengal is apprehensive of a raw material shortage as strict enforcement of animal slaughter regulations by the state government is set to disrupt supplies of cow and buffalo hides, traders said. The impact is likely to be visible after Eid al-Adha, traditionally a peak season for hide availability, as Muslim clerics claimed that cow sacrifice during the celebrations in the state dropped to negligible levels under the stringent regulations, which the community chose to abide by.

Indian Leather Products Association (ILPA) president Md Azhar told PTI that the raw material shortage could worsen the situation for the industry, an already stressed sector facing weak global demand and logistical disruptions. Azhar noted that the concern extends beyond the festival to the stricter regulations on cattle slaughtering and the sale and purchase of cows and buffaloes, which will impact overall hide availability. Under the stricter regulatory regime and enforcement of the West Bengal Animal Slaughter Control Act 1950, authorities have intensified checks on cattle transportation, documentation and slaughter practices.

The Bengal leather industry is estimated to have an annual turnover of Rs 23,000 to Rs 25,000 crore, including exports worth around Rs 10,000 crore, with approximately 6 to 7 lakh workers directly or indirectly dependent on the sector in and around Kolkata. Cow and buffalo hides are extensively processed by Kolkata's leather cluster, centred around the Bantala Leather Complex, to manufacture export-oriented garments, wallets, handbags, durable footwear, industrial leather and saddlery items.

Prices of hides are expected to increase, aggravating problems when the sector is already reeling under margin pressure and lower exports due to United States tariff imposition, the Iran conflict and the Strait of Hormuz-related shipping disruptions. The Hormuz crisis has led to lower container availability and declining exports in recent months, making the protection of workers' livelihoods a primary concern.

India currently imports nearly 50 per cent of its hide requirement because domestic supply is not adequate. Industry stakeholders stated that any decline in supply from West Bengal, one of the country's major leather hubs, would further increase dependence on overseas raw material shipments.

Leather Exports Council Chairman Ramesh Kumar Juneja acknowledged that the availability of leather raw material in the state would decline due to the cattle slaughter regulations, but said the industry will have to obey the law of the land. Juneja told PTI that while there will be some reduction in local availability, the situation can be managed through increased imports from countries such as New Zealand, Australia and parts of the Middle East. He added that shipments from New Zealand and Australia would face no issues as those shipping routes do not involve the troubled Strait of Hormuz, ensuring there would be no crisis for production.