Question : EXPORT OF LEATHER AND GRANITE

(a) whether the Government are aware that there is a huge demand for Leather products and Granite from India in the International Market specially in Japan and Eastern Countries;

(b) if so, the details thereof;

(c) whether in view of this the Government propose to export Granite and Leather products from the country specifically from the Erode district of Tamil Nadu; and

(d) if so, the steps taken by the Government to boost the export of these items?

MINISTER OF COMMERCE & INDUSTRY (SHRI MURASOLI MARAN)

(a) and (b) The demand for leather and leather products especially in Japan and Eastern Countries is negligible as compared to the total demand in the International Market. Granite is being exported from India to Japan and Singapore in large quantities whereas in other Eastern countries the demand is negligible. The details of exports of leather, leather products and granite to Japan and Eastern countries is annexed in the statement indicating the value of the exports and % age share of the total product specific exports from India.

(c )and (d) The Government have taken the a number of steps to increase export of leather, leather products and granite from India. Leather Industry in Erode District is mainly in the tanning sector and which is used for exporters of value added products.

Govt. of India and Council for Leather Exports have initiated a number of steps including Market Development strategy, simplify Annual Advance Licensing Scheme to facilitate the exporters in availing the duty exemption benefit to import the required inputs for their production and extension of Zero duty facility under Export Promotion Capital Goods Scheme for import of capital goods for leather & leather products industry. Tannery Modernization Fund has been recently created to help upgradation of technology alongwith product development in the tannery sector. To provide competitive edge to Indian exports, the import duty on most of the essential inputs has also been rationalized.

The Government of India have identified and declared `granite` as a `thrust area` and as such initiated necessary steps for boosting hassle-free export of granite. Mining including granite mining and development is under the purview of State Governments. As regards leasing, royalty, dead rent etc., each State practises a different policy. However, Department of Commerce had organised a State Mines Ministers Conference in November 1997 to resolve the various issues connected with development of granite industry. Department of Mines have also notified rules for systematic development, scientific mining and conservation of granite through out India.

STATEMENT REFERRED TO IN REPLY TO PARTS ( a) & (b) OF THE LOK SABHA UNSTARRED QUESTION NO. 2413 FOR ANSWER ON 10.03.2000 REGARDING EXPORT OF LEATHER AND GRANITE EXPORTS FROM INDIA

(Rs. in Crores)

1998-99
1997-98
Country
Leather & Leather products
% share
Granite
%
Japan

3.12
0.45%
87.97

9.18
Malaysia

1.48
0.21%
10.72

1.12
Thailand
0.65
0.09%
6.64
0.69
Singapore

1.45
0.21%
49.36

5.15	Source : DGCI&S Source : CAPEXIL