Leather exporters focusing on completion of production, execution of export orders on time: CLE

Council for Leather Exports (CLE) Chairman Aqeel Ahmed Panaruna said leather, leather products and footwear segments have suffered huge export losses to the tune of USD 1 billion, on account of the COVID-19 pandemic. The exports declined from USD 5.69 billion in 2018-19 to USD 5.08 billion in 2019-20, registering a dip of 10.73 per cent.

After getting severally affected by the coronavirus-induced lockdown, leather exporters have started focusing on ensuring completion of production schedule and execution of export orders on time, CLE on Tuesday said. Council for Leather Exports (CLE) Chairman Aqeel Ahmed Panaruna said leather, leather products and footwear segments have suffered huge export losses to the tune of USD 1 billion, on account of the COVID-19 pandemic.

The exports declined from USD 5.69 billion in 2018-19 to USD 5.08 billion in 2019-20, registering a dip of 10.73 per cent. "Now, the focus of the industry is to ensure completion of production schedule and execution of export orders on time, so as to meet the delivery commitments to the buyers.

"The industry is keen to utilise the emerging opportunities and get back on the export growth path at the earliest," he said in a statement. This decline in export continued in April and May 2020 also. In April, the shipment declined 93.28 per cent to USD 22.25 million, while it contracted 75 per cent to USD USD 106.27 million in May.

He said the decline in exports will continue in June too. "Our major markets of Europe and USA (to which 70 per cent of our exports are directed) were severely affected by the COVID-19 pandemic, leading to huge cancellation of export orders and delay in payments for exports already made. This is the reason for the huge decline in exports," he said.

Panaruna added that these markets have now opened and have placed orders for the upcoming autumn/ winter season. "The shipments for the upcoming season have to be made on or before July 31, 2020, to the buyers," he said.

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