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India considers scrapping duty on raw hide exports

Published: 09 Jan, 2019

On December 18, India’s Ministry of Commerce is reported to have met with representatives from the domestic beef and leather sectors to consider the possibility of temporarily scrapping tax on the export of raw hides.

As tanneries in the state of Uttar Pradesh have been forced to close down, or to partially operate, for three months ahead of the Kumb Melah religious festival, the Government is said to be considering the removal of the export duty on raw hides to avoid the country’s meat industry stocking up or throwing away the material during the period. Representatives from the All India Meat and Livestock Exporters Association (AIMLEA) claim the current 60% tax on raw hides exports impedes the meat industry to price its products competitively.

Since December 15, most tanneries in Kanpur and Unnao have shut down for three months under the order of the Uttar Pradesh (UP) authorities. According to AIMLA, only some units connected to the Loni drain that does not open up into the Ganges river, are being allowed to partially function under numerous restrictions. “It is very clear that the tanneries will not be able to process the raw hides that are the by-products of the meat industry. The government must facilitate their export,” Fauzan Alavi from AIMLEA told local media.

Reportedly, no official decision has yet been taken by the Commerce Ministry. For information about subscribing click here.

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