Cow slaughter ban affecting India's leather industry

With the recent cow slaughter ban in certain states in India, footwear suppliers have been having difficulty sourcing raw leather. In a report conducted by Developing Country Sourcing, suppliers have had to resort to imported leather, which is twice the cost of domestic leather. The cost of buffalo hides in India has also gone up by 25 percent.

The ban has not only affected the production of leather and footwear products but also the shipment of items to clients. Suppliers have had to inform buyers of the possible shipment delays due to the absence of raw material.

India footwear exports

India ranks as one of the world's top footwear exporters, with approximately 115 million pairs of shoes in exports. Europe is still its top export destination - although it has recently weakened - including Germany, Italy, France and Spain.

Suppliers are currently targeting the Middle East and Asia Pacific as upcoming markets for footwear exports.

Competitive advantages

What has contributed to India's international standing is their skilled manpower and well-established presence in the international market. It also has a large bovine population, owning 21 percent of the world's cattle and 11 percent of the world's goat and sheep population. The rising cost of manufacturing in other competing countries has also given India an advantage in capturing a larger market share.

Challenges

Aside from current cow slaughter ban, Indian suppliers also has been having difficulty with remotely located production houses. Since most of the big leather clusters in India like Kanpur, Agra, Delhi, etc are landlocked, the cost of transportation and logistics is higher.

Suppliers have also been having difficulty competing with exporters from China, which offer items at cheaper rates. They have tried to adjust prices accordingly to compete but end up short and having to shut down their production units.

See a comparison table of footwear suppliers on GlobalSources.com