Economy, Business And Markets

Leather Exports Down 81%

Leather Exports Down 81% Leather Exports Down 81%

Due to export duties levied on leather, salambor and wet blue in the fiscal 2012-13, the export of these products plummeted from around $200 million in that year to close to $38 million in the last Iranian year (ended March 20, 2017), registering an 81% decline, the deputy head of Iran Pickled Skin and Leather Producers and Exporters Association said.

"The regulation was ratified to encourage producers to produce and export finished leather, which would bring the country more value added. Yet, those behind it didn't seem to realize that we don't have the required infrastructure and even if we did, our end prices cannot compete in international markets," Mohammad Lahouti was also quoted as saying by the Persian monthly Ayandehnegar as saying.

According to the official, Iran produces 5.5% of the world's light leather (derived from sheep and goat hide), yet this opportunity has been wasted due to mismanagement and a lack of support for the industry.

"About 10% of the local leather production suffice to meet domestic demand and the remaining 90% must be exported. To go through with this, we need government support," he said.

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