The leather industry expects the government to allow full-fledged operations in June, otherwise it fears it will lose export orders to other countries.
“We welcome the government decision to allow industries to operate with 50% staff in most districts till May 31. However, April, May and June are the peak demand season and it is important to resume 100% production,” said Panaruna Aqeel, chairman, Council for Leather Exports, which is the apex trade promotion organisation of the Indian leather and leather products industry.
Mr. Aqeel pointed out that the leather industry has seen order cancellations of $1 billion due to the lockdown, out of which Tamil Nadu accounts for 37%.
Mr. Aqeel said with other countries like Vitenam opening up, it is important to ensure that industry does not lose out to other countries in terms of export orders. He pointed out that the leather, leather products and footwear industry is labour intensive and majority of the units are in the MSME segment.
The Indian leather sector accounts for over $5 billion in exports and is the second-largest producer of footwear and leather garments in the world, the second-largest exporter of leather garments and the third-largest exporter of saddlery and harnesses.
Apparel Export Promotion Council (APEC) Chairman A. Sakthivel said allowing industries to operate with 50% staff will help clear order backlog.
However, he said inter-district movement of workers should be allowed in order to ensure smooth operations.
