KARACHI, Nov 7: Tanneries in the metropolis have started feeling the pinch of the meat merchants’ strike following a decline of about 50 per cent in arrival of skins and hides into the tanneries as a result of closure of slaughter houses. They anticipate fall in export earnings from tanned leather and leather goods in case the strike prolongs.
Karachi has a total 150 tanneries in which 40-50 (medium sized and large) are actively working. There are around 50 small sized tanneries and the rest are not functioning properly.
“Our local tanneries consume 15,000 skins of sheep and goats and 4,000-5,000 hides of cows and buffaloes daily but currently facing 50 per cent decline in arrivals,” Pakistan Tanners Association (PTA) central chairman S.M. Naseem told Dawn on Friday.
“The share of Karachi in country’s total export of leather and leather garments is about 50 per cent,” he said, fearing escalation in prices as well as decline in export earnings from tanned leather and leather products in case slaughter houses remained closed for another one or two weeks.
“The real impact of decline in skin and hides in tanneries will be ascertained next week possibly if slaughter houses remained shut on butchers’ strike for a longer period,” he said.
The current price of goat skins is Rs175 per piece and the price of cow hides ranges between Rs1,000 and Rs1,200 per piece. The price of sheep skin is tagged at Rs225 per piece. “Any increase in prices may create problems for the tanning industry,” Naseem said.
Pakistan’s leather and leather exports fetched $154 million in July-September 2003 as compared to $173 million in the same period of 2002. Exports of leather products (leather tanned, garments and footwear) earned $695 million in 2002-03.
The PTA chief said tanned leather exports continue throughout the year. However, problems may occur in the leather garments exports as exporters will have to meet their commitments to send shipments ahead of winter season as well as Christmas.
Mr Naseem said livestock production in Pakistan was insufficient and there was a need for the organised cattle farming.
According to the State Bank’s annual report of 2002-03, across-the-board increases were registered in the population of all the heads of livestock. Cattle population jumped to 23.3 million in 2002-03 from 22.8 million followed by slight rise in buffalo population to 24.8 million from 24 million. Sheep and goat population rose to 24.6 million and 52.8 million, respectively, in 2002-03 from 24.4 million and 50.9 million in the previous fiscal.
Pakistan Leather Garment Manufacturers and Exporters Association (PLGMEA) chairman Fawad Ijaz Khan said that tanneries were just getting 25 per cent supplies of skins and hides these days from various sources (not from the slaughter houses). He said that tanneries were getting a meagre supply of skins and hides from a parallel slaughtering being conducted in various areas, but it was not sufficient to meet full requirement.
“Tanners and leather goods exporters will see the real impact after two weeks as they are currently relying on buffer stocks of one week to one month which the companies usually maintain as per their requirements,” he said.
He feared that exporters, who are now fulfilling Christmas orders from foreign buyers, might not be in a position to meet fresh export commitments in case short arrivals of skins and hides into the tanneries linger on in future.
