Brexit to hit leather exports by 10%

Chennai: Britain’s exit from the European Union, that has led to a 10% drop in the value of the pound, could lead to the leather export industry suffering over 10% reduction in value.

With UK being the second largest exporter from India (after the US), with a 12.5% market share, leather exporters across the country would face losses. “We could increase the prices to maintain margins, but no one would be willing to buy, given the economic conditions. Substantial number of exporters across Tamil Nadu, Kanpur, Agra etc, would be affected,” said Rafeeque Ahmed, chairman, Council for Leather Exports.

Ahmed added that while the losses are significant, it is too early to look out for alternatives to keep the business running. “We will observe the market and depending on whether the pound revives, we will look out for other options,” he said.

The Indian leather industry, which suffered over a 10% reduction in overall exports in FY 2015-16 owing to poor performance of the European market, was showing signs of revival with increase in the number of orders, following increasing cost of manufacturing in China.