Very tough times for India’s farmers: they don’t sell buffalo leather and tanning industry is facing crisis. Let alone duties on export

Ironically enough, over the last two-month period, from April to May, India’s export of buffalo meat increased by 15%, in terms of volumes, and went up by 10% with regard to incomes: such data are provided by APEDA, India’s department of agricultural and processed food products. Despite that, the industry is not in high spirits, as they rather expect a dull trend by the end of the year. Why? To begin with, because of the political situation: think about the legislative decree on cattle trade for example. Secondly, owing to FMD syndrome sales towards China are dropping. Yet, most of all, the industry is being affected by a tanning issue: in fact, heavy customs duties have been applied to raw hides, therefore undermining their export; furthermore, domestic leather business is currently facing tough times and Kanpur tanneries are about to close in the next quarter. Farming and livestock industry is bound to lose a valuable profit margin. “We should get some incentives to export”, tells the Economic Times a leather industry entrepreneur. Talking about international trade relations, the government is not on the same wavelength at all. In fact, they are currently about to raise tax on import of passementerie and components for leather and fabric footwear, from 3% up to 5%.  


Choose one of our subscription plans

Do you want to receive our newsletter?
Subscribe now