The Coronavirus pandemic in India is putting pressure on an industry that was already struggling. The lockdown is killing off the local leather segment. Businesses shut down, so orders stopped. Now that in the rest of the world businesses try to reopen or planning to, orders have been placed to India’s segment. But they are a lot less, leading locals to think that demand will never be the same.
The lockdown is killing off the local leather segment
“Initially our clients cancelled all orders. But now (that they think of recovering), we are only receiving 30% of the original amount”, explains to newindianexpress.com the president of CLE (Council for Leather Exports) for Southern States, Israr Ahmed. “The fundamental problem is that we cannot make any promises due to the unknown duration of the lockdown”. Highlighted the manager. The shutdown of businesses before, and the uncertainty now, cause entrepreneurs to be unable to guarantee delivery to the clients.
Demand will never be the same
Indian manufacturers fear that clients will direct their orders to other countries for good. “Companies in China and Vietnam are fully operational. If we don’t accept orders, clients will prefer these two countries over ours”, added Mr. Ahmed. The problem is specifically applicable for the Tamil Nadu district, which weighs 37% of national production output. As of today, India’s leather industry generates revenue of 6 billion USD, employing 4.42 million people.