Analysis of Export Performance of leather and leather products during April-March 2009-10 vis-à-vis April-March 2008-09

1.0 Introduction:

The export of leather and leather products for the period April-March 2009-10 touched US$ 3400.97 million against the performance of US$ 3599.46 million in the corresponding period of last year, registering a decline of 5.51%. In rupee terms, the export during April-March 2009-10 touched Rs.161353.39 million against the previous year’s performance of Rs.165551.27 million registering a marginal decline of 2.54%.

A Statement showing the Product-wise Export performance during April-March 2009-10 vis-à-vis April-March 2008-09 is given below:

(Value in Million Rs)

CATEGORYAPR-MARAPR-MAR% VARIATION
2008-092009-10
FINISHED LEATHER30970.7329677.49-4.18%
LEATHER FOOTWEAR57237.6759511.52


3.97%
FOOTWEAR COMPONENTS11330.34


9921.86


-12.43%
LEATHER GARMENTS19601.1620330.45


3.72%
LEATHER GOODS40172.55


35867.98


-10.72%
SADDLERY AND HARNESS4238.48


3956.19


-6.66%
NON-LEATHER FOOTWEAR2000.34


2087.90


4.38%
TOTAL165551.27


161353.39-2.54%
Source : DGCI &S

(Value in Million US$)
CATEGORYAPR-MARAPR-MAR% VARIATION
2008-092009-10
FINISHED LEATHER673.37625.54


-7.10%
LEATHER FOOTWEAR1244.48


1254.37


0.79%
FOOTWEAR COMPONENTS246.35209.13


-15.11%
LEATHER GARMENTS426.17


428.52


0.55%
LEATHER GOODS873.44


756.02-13.44%
SADDLERY AND HARNESS92.1583.39


-9.51%
NON-LEATHER FOOTWEAR43.49


44.01


1.19%
TOTAL3599.46


3400.97-5.51%

1.1 Major Highlights:

In Rupee terms, export of leather footwear, leather garments and non-leather footwear have recorded positive growth of 3.97%, 3.72% and 4.38% respectively. All other product categories are showing declining trend.
In Dollar terms too, export of leather footwear, leather garments and non-leather footwear have recorded positive growth of 0.79%, 0.55% and 1.19% respectively. All other product categories are showing declining trend.
Export of finished leather, footwear components, leather goods and saddlery& harness have declined during 2009-10 as compared to the exports in 2008-09.

2.0 Country-wise analysis

The major markets for Indian leather products are Germany with a share of 14.45%, UK 13.41%, Italy 11.72%, USA 8.71%, Hong Kong 7.35%, France 7.53%, Spain 6.43%, Netherlands 4.03%, Belgium 1.92%, U.A.E.2.03% and Australia 1.58% These 11 countries together accounts for nearly 79.16% of India’s total leather products export.
During 2009-10, export of leather & leather products to UK and France had shown a positive growth of 10.34% and 15.73% respectively.
Other markets showing increase in imports from India are Hong Kong 5.13%, Switzerland 3.98%, South Africa 9.37%, Austria 2.89%, Belgium 19.44%, and Korea Republic 10.92%.
Export of leather & leather products to USA has recorded a decline of 17.54%, Germany 3.36% and Italy 13.64%.

Trend in Major importing Countries of leather products

CountryApril-March 2008-09 April-March 2009-10


% Variation
Germany508.45491.36


-3.36%
USA359.22296.23-17.54%
UK413.24


455.96


10.34%
Italy461.56


398.58


-13.64%
France221.33


256.1515.73%
Hong Kong237.72


249.915.13%
Spain219.18218.63


-0.25%
Russia12.01


6.68


-44.37%
Netherlands148.77


136.96


-7.94%
Australia55.76


53.65-3.80%
New Zealand5.464.28


-21.65%
Canada35.29


27.65-21.65%
South Africa22.4524.55


9.37%
Japan20.24


17.08


-15.63%
Denmark60.12


55.68


-7.38%
U.A.E.85.79


69.16


-19.39%
Saudi Arabia19.28


20.98


8.82%
Source: DGCI & S

3.0 Port-wise export performance

As per the Port-wise compilation for the period April-March 2009-10, export of leather and leather products from Western Region and Northern Region have shown positive trend while exports from all the other Regions recorded declining trend:

    (Value in Million US$)
RegionAPR-MARShare in APR-MARShare in % Variation
2008-09Total Export2009-10Total Export
Southern1395.98


38.78%1352.9739.78-3.08%
Western698.3619.40%777.86


22.87%


11.38%
Eastern542.4015.07%409.78


12.05%


-24.45%
Northern429.46


11.93%445.4513.10%3.72%
Central109.75


3.05%104.78


3.08%


-4.53%
Others423.51


11.77%


310.14


9.12%-26.77%
Total3599.46


100.00%


3400.97


100.00%


-5.51%

Note: This is purely based on port-wise compilation and does not reflect the accurate regional performance: Source: DGCI& S

4.0 Conclusion:

India’s export of leather & leather products during April-March 2009-10 touched US$ 3400.97 million as against US$ 3599.46 million in the corresponding period last year, recording a declining trend of 5.51%.
In Rupee terms, though the overall export decline was marginal at 2.54%, export of leather footwear, leather garments and non-leather footwear have shown increase in exports during the said period.
Footwear alone holds a major share of 44.33% in India’s total leather products export trade. This is followed by leather goods & accessories with a share of 22.23%, finished leather 18.39% and leather garments 12.60%