Modi govt's crackdown on Muslim-run leather units dents exports, hits jobs

Agencies
October 3, 2017

New Delhi, Oct 3: A government crackdown on Muslim-dominated abattoirs and the trade of cattle dragged down India's exports of leather shoes by more than 13 percent in June, as leading global brands turned to China, Bangladesh, Indonesia and Pakistan to secure supplies.

The drop in exports of shoes and leather garments comes as a setback for Prime Minister Narendra Modi, who has sought to create millions of jobs by more than doubling the leather industry's revenues to $27 billion by 2020.

Emboldened by the victory of Modi's Bharatiya Janata Party (BJP) in the 2014 general election, Hindu hard-liners, who consider cows sacred, became more assertive in their calls for a clamp-down on both the meat and leather industries, run by Muslims, who make up 14 percent of India's 1.3 billion people.

"The writing was already on the wall," Nazir Ahmed, CEO of shoemaker Park Exports, told Reuters by phone from Agra, a shoe-making hub and home to the Taj Mahal. "We have killed the goose that laid the golden egg."

India, the world's second-biggest supplier of shoes and leather garments, exports nearly half its leather goods, with overseas sales estimated at $5.7 billion in the 2016/17 fiscal year to March, down 3.2 percent from a year earlier. Footwear exports fell more than 4 percent in April-June, to $674 million.

Informal sector

In March, after being appointed chief minister of Uttar Pradesh, India's most populous state and a major leather exporter, Yogi Adityanath, a firebrand Hindu monk, ordered a closure of abattoirs operating without licenses.

Slaughterhouse owners complain that much of India's meat and leather trade takes place in the informal sector, and it's hard to get licences, especially for smaller units.

In May, citing cruelty to animals, the federal government banned the trade of cattle for slaughter, and restricted livestock sales only for agricultural purposes such as ploughing and dairy production.

But the country’s top court overturned that order, citing the hardship the ban had caused.

That has not brought relief as repeated attacks on trucks carrying cattle still rankle the leather trade.

"The supreme court has allowed the resumption of trade for cattle, but the ground reality is that cow vigilante groups continue to be active and no one wants to risk his life by transporting cattle," Ahmed said.

Deterred by a clutch of measures that squeezed the supply of leather, a key raw material, brands like H&M, Inditex -owned Zara and Clarks, cut back their orders to India, said M. Rafeeque Ahmed, a leading shoe exporter from the southern city of Chennai and former president of the Federation of Indian Export Organisations.

"We lost orders because our buyers were sceptical of our ability to meet their requirements. Instead, most buyers moved to rival suppliers in Asia and southeast Asia," he said.
A spokesman for India's trade ministry declined to comment.

Earlier this year, a finance ministry report said India should sign more free trade agreements and make tax and labour reforms to drive leather exports, which offer "tremendous opportunities for (the) creation of jobs."

The industry is also grappling with a Goods and Services Tax, introduced in July, which has pushed up production costs by 6-7 percent, exporters said.

Nowhere to hide

The crackdown also hurt day-workers employed at shoe and garment making units and hit leather supplies, forcing manufacturers to import hides from the United States, Australia, and some European nations, raising the cost of production and squeezing margins.
Many tanneries, as a result, have run out of leather.

"My business has come to a standstill because I don't have any inventory at all. Most large shoemakers are importing hides now," said a tannery owner, who asked not to be named so as to avoid retaliation from cow vigilante groups.

Nearly a third of the roughly 3 million-strong workforce, mostly lowly-paid casual workers employed in the leather sector, have lost their jobs in the past six months, according to six shoemakers and two tannery owners interviewed by Reuters for this article.

Since most Indian states have outlawed cow slaughter, the supply of leather largely comes from the legal slaughter of buffaloes whose skins are used in many leather goods.

"Everyone must abide by the rule on cow slaughter and respect sentiments, but by choking the supply of other animal hides, we have nearly killed a thriving industry," said Ahmed of Park Exports.

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News Network
November 13,2024

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In the heart of Mangaluru, where rising air pollution is spurring public health worries, voices are calling for a greener, cleaner shift in the city’s public transport. Leading this call is APD Foundation, a Mangaluru-based environmental NGO, which has urged Forest, Ecology, and Environment Minister Eshwar Khandre to mandate electric vehicle (EV) adoption in public transport.

Abdullah A Rehman, CEO of APD Foundation, emphasized in a formal letter to the minister that Mangaluru’s public transportation system—efficient and organized with both government and private players—could transition smoothly to EVs in stages. He suggested that government-backed financial incentives, partnerships with EV manufacturers, and collaborations with environmental groups could streamline the switch.

Rehman stressed the potential of EVs to cut down emissions, enhance air quality, and reduce noise levels, noting the quieter operation of electric buses. He confirmed that a copy of his letter was submitted to the Deputy Commissioner as well.

However, Dilraj Alva from the Dakshina Kannada City Bus Association noted potential challenges, explaining that the shift might take up to two years due to infrastructure and budget hurdles. Most EV buses, he explained, are procured through aggregators, not directly by individual operators. The addition of charging stations and other essential infrastructure further complicates the transition.

Alva also raised the economic concern: while diesel buses are priced between ₹30-40 lakh, electric buses can cost up to ₹1 crore. Reflecting on recent meetings with companies, including one in Manipal, he questioned the assumption that EVs are an absolute solution to pollution. “EVs aren’t entirely eco-friendly, especially when considering battery disposal,” he cautioned.

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News Network
November 12,2024

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Mysuru, Nov 12: Zameer Ahmad Khan, the Tourism and Waqf minister of Karnataka, who stirred a controversy by addressing the Union Minister HD Kumaraswamy as ‘Kaala Kumaraswamy’ has tendered apologies for his remarks.

Speaking to reporters in Mysuru on Tuesday, Minister Zameer stated that he will apologise if remarks have hurt JD-S workers.

“We both are very close. Then, in a total of 24 hours, we were together for 14 hours. He used to fondly address me as “kulla” (shorty) and I used to address him as “kariyanna” (blacky, kaalia),” Minister Zameer stated.

“I am not addressing him as ‘kaalia’ for the first time. I have not said something highly derogatory. It is being made as big in the backdrop of elections. With love, he used to call me a shorty and I called him a blacky. If I had caused pain to anyone by my words I apologise,” he said.

He further stated: “Kumaraswamy had said that he didn’t want the votes of the Muslim community. But now they are attempting to purchase Muslim votes. Against this backdrop, I have made the remark.”

Minister for Home G. Parameshwara stated on Tuesday, “Minister Zameer and Kumaraswamy are close friends. Their comments against each other are not significant.”

Zameer Ahmad Khan, the Tourism and Waqf minister of Karnataka stirred a controversy on Monday as he addressed the Union Minister as ‘Kaala Kumaraswamy’.

JD-S on Tuesday demanded a public apology and resignation of Minister for Waqf and Tourism Zameer Ahmad Khan over his ‘racist’ remarks.

“Remember, there is no place here for your divisive policies. You have insulted the people by making ethnic, racist and discriminatory statements. You should apologize to the people of the state and resign,” the JD (S) demanded in the post.

Union Parliamentary Affairs and Minister for Minority Affairs Kiren Rijiju reacted sternly to the racist jibe and stated, “I strongly deplore Congress Minister Zameer Ahmed calling Union Minister and former Chief Minister of Karnataka Kumaraswamy as 'Kaalia Kumaraswamy'.

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News Network
November 15,2024

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Union minister Amit Shah on Friday, November 15, said PM Narendra Modi will amend the Waqf Act despite opposition from leaders like Uddhav Thackeray and Sharad Pawar.

"Modi ji wants to change the Waqf Board law, but Uddhav ji, Sharad Pawar and Supriya Sule are opposing it," Shah said, addressing a rally at Umarkhed in Maharashtra's Yavatmal district.

"Uddhav ji, listen carefully, you all can protest as much as you want, but Modi ji will amend the Waqf Act," he said. Shah said there are two camps in the November 20 Maharashtra assembly polls, one of 'Pandavas' represented by the BJP-led Mahayuti and the other of 'Kauravas' represented by Maha Vikas Aghadi.

"Uddhav Thackeray claims that his Shiv Sena is the real one. Can the real Shiv Sena go against renaming Aurangabad to Sambhajinagar? Can the real Shiv Sena go against renaming Ahmednagar to Ahilyanagar? The real Shiv Sena stands with the BJP," Shah said.

"Rahul Baba used to say that his government would credit money in the accounts of the people instantly. You were unable to fulfil your promises in Himachal, Karnataka, and Telangana," he said.

Shah said the Mahayuti alliance has promised that women will get Rs 2,100 per month under the Ladki Bahin Yojana. "Kashmir is an integral part of India and no power in the world can snatch it away from us," Shah said.

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