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By Chamitha Kuruppu

The leather industry is losing an annual income of around Rs.700 due to the poor quality of raw hide at present.

A group of leading stakeholders of the leather industry decided at a workshop yesterday on 'Hide Quality Improvement' that the need of the hour is to implement the existing system properly.

Minister of Enterprise Development, Industrial Policy and Investment Promotion Prof. G.L. Peiris said that the selection and prioritisation are the two main factors that need to be looked into in order to develop the economy. "Identifying and selecting industries which need to be developed is very important and the leather industry is one of them," the minister said.

In a bid to boost the industry a task force was set up by the government with the involvement of the ministry and participation of the private sector which will look into problems faced by the leather industry.

Peiris said that the duty of the ministry is not to lay down the law but to assist the industry to minimise shortcomings. " The ministry is in a position of addressing some of the critical problems in the industry," he said. Remedial measures were taken by the government to ease the tariff problem which was a burden on the industry.

Development of the industry depends on the quality of the leather, which cannot be achieved without improving the quality of hide. Therefore, immediate steps should be taken to reduce the damage done to the hide and skin.

"The industry needs innovative legislation, but before that it is important to realise how the existing legislation could be implemented properly," Peiris said.

Awareness and finding methods that decide on the quality of hide are also considered important. " By improving the quality the industry can focus on a niche product and market,".

Secretary to the Ministry Ranjit Fernando pointed out that depending on the local market alone will not boost the industry. "We should create an industrial sector which is internationally competitive," Fernando said. He said that directional changes are needed in the tariff system which does not welcome any sudden decision at present. " Without laying heavy burdens on investors the government must introduce a private sector led growth strategy,". In a bid to protect the industry the government will take steps to reduce the 25% tax imposed on finished goods.

Nearly 40% of the hide and skin available are of bad quality and the reasons identified by the Task Force appointed by the ministry are unrestricted branding of animal, improper flaying of the hides, improper handling of the carcass during pre slaughter and post slaughter stages, tick bites, inadequate preservations after hide removal and lack of abbatoir system in the country.

The importance of modern slaughter houses was also stressed at the event.

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