The US has increased import duty on Indian leather products by 60%, which is double the duty levied on China and more than Pakistan (19%) and Bangladesh (20%). This decision has put the leather industry of Kanpur in a deep crisis, where every year Rs 2000 crore is exported to the US. Businessmen are fearing that this increase may stagnate their entire exports.
American buyers are retreating
Kanpur’s leather exporter and factory owner Zafar Iqbal said that the shipments have been stopped due to the new tariff as American buyers are retreating from the order. He told that when the tariff was 10% in May, then we raised half the expenses and saved the order. But now no one can withstand such a huge duty. Our five containers are ready but what to do now, do not understand.
Dual hit on industry
Exporter Nayar Jamal said that the industry was already struggling with difficulties due to environmental rules like Namami Gange. Now this killing of tariff is getting overwhelmed. Nevertheless, he supported the government’s stance and said that he should not bend before the pressure of America.
10 million jobs threatened
Leather businessman Javed Iqbal warned that this tariff growth can endanger the jobs of about 1 million people in Kanpur and neighbor Unnao. Due to low tariffs on Pakistan, China, Vietnam and Cambodia, American buyers can now turn there. He said that we are with the government, even if we have to suffer heavy losses for this.
Production stalled despite festive orders
Prerna Verma, exporter of leather accessories, said that there is confusion about the new policy, due to which the production has almost stopped. In recent years, the demand has already reduced by 60% and some units have had to trim the workers. Council for Leather Exports (Central Region) Chairman Asad Iraqi said that Christmas orders have been received, but production has stopped for the US market.
He met Union Commerce Minister Piyush Goyal in Delhi two-three days ago, where relief measures like interest subsidy were discussed in the event of 25% tariff. But now these remedies with 50% tariff are insufficient. Iraqi said that buyers and sellers can handle 5-10% additional cost, but not such a huge increase for anyone.
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