Kanpur’s leather exporters seek hike in export duty on raw hides

The Union Budget 2024 has raised concerns among Kanpur’s leather exporters, who fear increased challenges in procuring raw hides. Voicing this concern, Asad Iraqi, Regional Chairman (Central Region) of the Council for Leather Exports (CLE), stated that the budget’s provisions could adversely impact the leather industry by increasing difficulties in sourcing raw materials. “Indian rawhide is being exported in large volumes, driving up local prices by two to three times,” Iraqi said, underlining that this is stifling production, as tanneries in Kanpur and Unnao now operate at just a quarter of their capacity.

Iraqi further warned that if the current situation persists, it could severely impact not only tanneries but also the footwear, bags, leather belts, and garment sectors that rely on this supply chain. The industry is already struggling to secure raw hides due to heightened exports, and the reduced export duty on "wet blue" hides introduced in the budget may further worsen local shortages, likely driving prices even higher.

To protect the domestic market, Iraqi urged the government to increase the export duty on raw hides, which he believes would stabilize local supply and support the growth of value-added products. He also recommended stricter checks on under-invoicing practices to curb excessive export of raw materials.