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 21,2024

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Prominent NRI community leader SM Syed Khalilur Rehman, fondly known as CA Khalil, passed away in Dubai on Thursday at the age of 86 after a brief illness.

Khalil had been admitted to Aster Hospital in Mankhool on Tuesday after experiencing severe leg weakness. Despite the best efforts of the medical team, he succumbed to a double heart attack that worsened his condition, his son Rais Ahmed confirmed.

The news of his passing has sent waves of grief across communities, particularly in his hometown of Bhatkal, Karnataka, where he was a celebrated figure. Tributes have been pouring in on social media, highlighting his significant contributions to international trade, social service, and education.

A Legacy of Leadership and Service

A chartered accountant by profession, Khalil was a founding member of the Dubai chapter of the Institute of Chartered Accountants of India (ICAI), where he served as chairman from 1987 to 1994. His illustrious career included key leadership roles, such as general manager of Khaleej Times, group executive director of the Ilyas and Mustafa Galadari Group, and vice-chairman of the Jashanmal Group of Companies.

He also chaired Maadhyama Communications and Sahil Online, a web-based news platform, and was a director and trustee of several media companies and charitable organisations in Dubai and India.

A Champion for Education and Philanthropy

Khalil’s impact extended far beyond his professional achievements. As president and general secretary of Anjuman Hami-e-Muslimeen, he played a pivotal role in the development of educational institutions, including schools and colleges in Bhatkal and surrounding areas. His dedication to social upliftment earned him recognition from the Government of Karnataka, which honoured him with a prestigious award for his philanthropic contributions.

A Life Celebrated

The Bhatkal Muslim Khaleej Council (BMKC) recently released a documentary celebrating Khalil’s remarkable life and service to the community—a testament to his enduring legacy.

CA Khalil is survived by his family and countless admirers across the globe. His passing marks the end of an era for Indian expatriates in the UAE and beyond, leaving behind a legacy of leadership, generosity, and commitment to community service.

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News Network
November 19,2024

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The Karnataka Police’s Anti-Naxal Force (ANF) achieved a major breakthrough on Monday night by eliminating Vikram Gowda, one of Karnataka’s most wanted Naxal leaders for over two decades. The encounter occurred in the dense Kabbinale forest of Udupi district, marking a significant victory against Naxal insurgency in the region.

Who Was Vikram Gowda?

Hailing from Hebri in Udupi, Vikram Gowda, 44, was a prominent figure in the Naxal movement. He went underground in 2002, initially serving as a courier and fund collector before rising to lead a breakaway Naxal group. Despite having only a fourth-grade education, he was a staunch advocate for tribal rights and a key player in the movement’s survival in Karnataka.

Bounty: ₹3 lakh from Karnataka and ₹50,000 from Kerala.

Legacy: The last major Naxal leader in Karnataka after the 2021 arrest of B G Krishnamurthy.

The Encounter

Police revealed that Gowda and his team visited Kabbinale village to collect groceries on Monday night. Acting on a tip-off, ANF ambushed the group. When the Naxals opened fire, ANF responded, leading to Gowda's death.

Escapees: Three Naxals fled, including prominent members Latha (aka Mundgaru Latha) and Raju.

Significance: This was the first Naxal casualty in Karnataka in over two decades.

Home Minister G. Parameshwara confirmed the operation, stating, “Gowda was elusive for 20 years, escaping multiple encounters. His death is a critical step in dismantling Naxal operations in the region.”

The Decline of Naxal Activity in Karnataka

Karnataka's Naxal movement has been dwindling, with members seeking refuge in Kerala and Tamil Nadu. The group’s strength had reduced to just 19 members by 2018, but recent sightings indicate attempts at revival:

2023 Activity: Reports of Gowda-led movements in the Kodagu and Hassan districts reignited concerns.

Political Heat: The BJP criticised the Congress government, alleging it created a “safe haven” for Naxals.

A Glimpse into Gowda’s Past

Personal Life: Gowda’s ex-wife, Savitri (alias Rajita), was arrested in 2021. She was a senior Naxal commander involved in insurgency since 2004.
Rehabilitation Efforts: Since 2013, Karnataka’s rehabilitation policy has seen 14 Naxals surrender and reintegrate into mainstream society.

A Milestone in Karnataka’s Fight Against Insurgency

The operation signifies a decisive blow to Naxal resurgence in the Western Ghats. While the ANF continues its search for escapees, the Karnataka government reaffirmed its commitment to offering rehabilitation to those willing to surrender.

As Karnataka celebrates this triumph, the message is clear: there is no room for insurgency in the state.

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News Network
November 15,2024

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Iran’s Islamic Revolution Guards Corps (IRGC) has killed or captured 69 terrorists linked to the Israeli spy agency Mossad during a major counterterrorism drill in the country's southeast, its spokesman says.  

General Ahmad Shafaei, the spokesman for the “Martyrs of Security” drill, said Friday that a total of 23 terrorists have been killed and another 46 arrested in various clean-up operations ever since the IRGC Ground Force launched it in the Sistan and Baluchestan province on November 1.

Seven terrorists have also turned themselves in during the period.

“The undeniable fact about terrorists is that they rely on arrogant powers, particularly the intelligence service of the wicked and vicious Zionist regime," Shafaei said.

“Unfortunately, weapons and munitions at terrorists’ disposal are among the most sophisticated ones in the world. This accounts for their heavy dependence.” 

The official stated that several members of the disbanded terror teams were non-Iranian nationals, who had been hired by foreign intelligence agencies to carry out acts of sabotage and terror inside Iran.

In a most recent operation, six terrorists were arrested and four others were eliminated, three of whom were non-Iranians, he added. 

On October 26, ten members of Iran's law enforcement forces were killed in a terrorist attack in the Gohar Kuh district of Taftan in the Sistan and Baluchestan province.

The so-called Jaish al-Adl terrorist group claimed responsibility for the assault, which was one of the deadliest in the province in recent months.

The group has carried out numerous terrorist attacks in Iran, primarily in Sistan and Baluchestan.

Its tactics include the abduction of border guards as well as targeting civilians and police stations within the province to incite chaos and disorder.

In January, Iran launched a military operation during which the headquarters of the Pakistan-based terrorist group was targeted in missile strikes, destroying its infrastructure.

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