CHENNAI: Although the leather manufacturing and exporting units have resumed operations after the relaxation of lockdown, the situation remains grim for the sector. Leather exporters are worried, as the industry is likely to see 30-40 per cent drop in shipments this year.
The sector is facing a plethora of problems such as shortage of manpower, restrictions by government and supply chain disruption; but what has upset it more is the lack of financial relief from the Centre.“Though units have resumed operations, the situation is nowhere near normal,” said Sanjay Leekha, vice-chairman, Council for Leather Exports. The industry fears it would lose a major chunk of export orders due to the restrictions on industrial activities.
“We have started receiving export orders, but with limited manpower, we cannot complete then on time,” said C Rangarajan, a leather exporter in Vellore. The units are currently functioning with 25 per cent of manpower, he said.
The scenario is same across the country. “Many units are located outside Delhi and due to transport restrictions, employees are finding it difficult to come to the workplace. Even migrant labourers have left. It is difficult to manage things with local labourers as the industry requires skilled hands,” said R K Singh, another leather exporter based in Delhi.
“No major relief was announced for the leather industry. Our major concern is to ensure revival of the units,” rued Leekha.