Professional Documents
Culture Documents
The rising unemployment despite high growth in non-farm sector in India is causing concern
to every one. The growth in Agriculture which provides livelihood to about 50 per cent of the
work force in India and 66 percent in Rajasthan is tardy. A very sizeable number has to be
moved away from agriculture for the remaining persons to earn well. Due to continuing high
growth rate of population, annual addition to the work force is over 10 million a year. In
Rajasthan, about 8 lakh livelihoods are needed annually for over the next decade to deal with
the problem. Realizing the enormity and urgency of the task of livelihood promotion, the
State Government set up Rajasthan Mission on Livelihoods in 2004.
In order to understand various facets of livelihood issues across segments, sectors and spatial
regions, RMoL has undertaken 25 rapid assessment studies, held 25 consultations and
initiated 4 pilot projects involving stake holders, academics, researchers, Government
functionaries and civil society organizations. The booklets being published now including the
present one contain our learning about complexities of livelihoods in a summarized manner,
derived from the field studies and consultations. These illuminate various facets of livelihoods
in the State and would be helpful in proper understanding of the issue and in developing
proper perspective in this regard. I do hope that all those who are concerned with the
problems of livelihoods, particularly the livelihoods of the poor, unemployed and the under
privileged would find these booklets very useful. Both the content and the views expressed
therein represent summation of views expressed by many persons and we would like to
thanks all those who made it possible for us to bring out these booklets including the State
Government, UNDP and BASIX. My colleagues at the RMoL worked tirelessly for holding
consultations and undertaking field studies. Appreciation is due to them as well.
M.L. Mehta
Deputy Chairman
RMoL
RMoL-BASIX
LEATHER SECTOR- OPPORTUNITIES AND
CONSTRAINTS
A
Study
on
Leather Sub-sector – in Rajasthan
By
Aide et Action
RMoL-BASIX
Abstract
The present study on ‘the leather sub-sector in Rajasthan’ conducted by Aid et Action on
behalf of Rajasthan Mission on Livelihoods has tried to encompass a detailed overview of the
existing leather sub-sector scenario in the state, stakeholders’ analysis and their strengths, issues
related to its more vigorous development, constraints in realizing its objective of being a potential
employers and finally suggests with recommendations to make the development more
pronounced.
For a number of years the leather sector was reserved for small-scale sector in India. This
was done primarily to promote employment. A number of policy instruments such as tax
exemption, licensing restrictions and reservation policy were used to encourage the growth of the
leather industry in the small scale and cottage industry sector. India’s leather industry plays an
important role both as an earner of foreign exchange and provider of employment. The industry,
which employs more than 2.5 million people, exported about US$ 1970.98 million worth of
goods in 2000-01. A large proportion of India’s export of leather and leather products is to four
countries, namely USA, Germany, UK and Italy besides Spain, Hong Kong and France. Together,
these countries accounted for 59% of the total exports of these products during 2000-01.
Rajasthan is famous globally for its conventional craftsmanship in leather goods. Along
with textile products, gems & jewellery the leather products such as jutis, mojris and bags are
important earners of revenue for the State and income for its artisans. However, the growth
prospects of the leather sub-sector, which employs over 200,000 people, are constrained due to
poor technology, lack of infrastructure and appropriate linkages with markets. An appraisal of the
dynamics of this important source of livelihood is therefore requires immediate attention.
According to the 1991 Census, the number of workers employed in the leather sector was
65,000, registering a considerable drop from about 82,000 workers since 1981. Between 1980 and
2000 Rajasthan’s leather industry has grown in urban areas, where there is an ever growing
demand for westernized footwear, garments and up market designer leather products. On the
other hand leather artisans, who are concentrated in villages and continue to cater to rural
demands, have become stagnant because of limited purchasing power and lack of upward linkage.
The unfavourable economics of leather-work together with a quest for a new social
identity have compelled many to seek other livelihood options. The high degree of segmentation
in the leather sub-sector leads to higher transaction costs and, consequently, to lower value
addition. The further evolution of the leather sub-sector in Rajasthan requires increased emphasis
on technology & design up gradation, standardization, improved access to credit and marketing
support.
The primary constraint appears to be the lack of technologies, infra-structure and finances
for value addition, and owing to these hiccups more than 180 lakhs of hides go outside the state
without any formidable change. Due to water scarcity, the state is not able to develop good
tanneries, although improved vegetable tanning technique and dry tanning methods are available
with agencies like CLRI, TIFAC, etc but not yet disseminated properly among the tanners of the
state, who are still from the old school. Product design is only in isolated pockets, spurred either
by the tourist traffic in urban areas, or by the export markets.
The study comes out with one of the suggestions that the state should consider
establishing “Leather Promotion Park” in the state to attract leather `units being established in
response to the export boom. These promotion parks should primarily be run by the association of
Industries having stakes of artisans also. The study goes on to suggest that it is desirable that the
private sector units establish their own training units, rather than these being set up as a
governmental effort. However, the state government may consider giving a capital grant for
facilities and also tapering operating support to such private training institutions.
RMoL-BASIX 1
1. Background of the study:
Rajasthan is famous globally for its conventional craftsmanship in leather goods. Along
with textile products, gems & jewellery, leather products (such as jutis, mojris and bags) are
important earners of revenue for the State and income for its artisans. However, the growth
prospects of the leather sub-sector, which employs over 200,000 people, are constrained due to
poor technology, lack of infrastructure and appropriate linkages with markets. An appraisal of the
dynamics of this important source of livelihood is illustrative.
Three sets of activities define leather work: flaying, tanning and manufacturing of leather
articles, among which footwear and bags. Each of these categories has distinct skills and techno
economic constraints. In Rajasthan the main communities engaged in leather work, which are
among the poorest, are Raigar, Khatik, Meghwal, Berwa, Raidas and, in some areas, the Jatavs.
Though these communities are spread all over the state, the districts of Jaipur, Sawai Madhopur,
Nagaur and Jodhpur have the highest concentration of these communities, which have
comparatively a low presence in South Rajasthan.
According to the 1991 Census, the number of workers employed in the leather sector was
65,000, registering a considerable drop (from about 82,000 workers) since 1981. The estimated
figure for 1987/88, according to the National Sample Survey, was of 80,000 persons. The number
has again increased due to some successful interventions in leather sub-sector in the state.
In leather-work, the tools and equipment are not very expensive, the critical element
being the availability of leather and the holding capacity for leather as a buffer for process
fluctuations. Therefore availability of credit is the defining constrain in the leather sub-sector,
which comes under the purview of the Khadi & Village Industries Board (KVIB). Consequently,
there is little incentive for other sources of institutional credit to finance small leather enterprises.
Between 1980 and 2000 Rajasthan’s leather industry has grown in urban areas, where there is an
ever growing demand for westernized footwear, garments and up market designer leather
products. On the other hand leather artisans, who continue to be concentrated in villages, continue
to cater to rural demand, which is stagnant because of limited purchasing power.
Poor institutional economics is also compounded by social factors. Communities that are
traditionally connected with leather work have been subject to social discrimination, due to the
stigma of ritual pollution that the caste system attaches to these castes. The unfavourable
economics of leather-work together with a quest for a new social identity have compelled many
to seek other livelihood options. An improvement in the economic benefits to small producers in
the leather sub-sector is therefore necessary to sustain interest and skill transfer over generations.
The high degree of segmentation in the leather sub-sector leads to higher transaction
costs and, consequently, to lower value addition. The further evolution of the leather sub-sector in
Rajasthan requires increased emphasis on technology & design up-gradation, standardization,
improved access to credit and marketing support. The success of “Operation Mojari”, an initiative
undertaken under the National Leather Development Programme, needs to be replicated on a
larger scale, if the state is to capitalize on the national and international demand for traditional
leather goods.
2. Scope of study
a) After collating the information of what has been done so far, two potential districts were taken
for further study.
b) The study has tried to establish the major concerns faced by this sub-sector by dealing all
contributing factors.
c) An overview of projects such as Operation Mojari, Caracas Utilization Plant, Effluent
Treatment Plant, Improved Vegetable Techniques by CLRI, design intervention by NIFT and
FDDI, marketing interventions such as IGLF and European Gift Fairs, etc have been done.
RMoL-BASIX 2
d) The study has covered various stakeholders like artisan families, RUDA, CLRI, Department of
Industries, IICD, Rajasthan Chamber of Commerce & Industries, SMART (an initiative of NLDP
after completion of Operation Mojari), SWRC etc.
e) An overview of the type of skills required in each activity from flaying till marketing
f) Suggestion on livelihood options and strategies at every level such as implementation,
collaboration and policy level.
3. Methodology
Both quantitative and qualitative information have been gathered through detailed
questionnaire, FGDs, interviews, discussions etc. For the same, available literature and all
possible means for secondary information have been explored along with direct questionnaires
for primary information. FGDs, formal/informal schedules in form of personal interviews with
various stakeholders to collect the information on raw material, value addition at each stage,
credit, technology, design, social taboos, market (local/export), profit margins, packaging,
branding, health issue, gender, child labour, employment and growth potential have been done
and analyzed.
To gratify the objectives, few Project Implementing Agencies (PIAs) and technical agencies like
Central Leather Research Institute (CLRI) as well as design agencies like Footwear & Design
Development Institute (FDDI), Indian Institute of Craft & Design (IICD) were also covered.
S.No Particular Number
1 District 03
2 Villages 13
3 Artisans 150
4 Flayers 15
5 Tanners 25
6 Livestock rearers 20
7 PIAs 02
8 Technical Agency 02
9 Design Agency 02
Four different set of schedules were designed to cover all the stakeholders like – livestock rearers,
artisan (flayer, tanner, artisans, traders, etc), project implementation agency (PIA) and technical
and design agencies.
The approach for selecting villages for the assessment was based on
A large number of production units in the villages to encourage integrated approach of
intervention at the time of implementation.
Different panchayat samitis (clusters of villages) to understand variation in demand
pattern of various services
Based on these parameters, a random sampling approach was adopted to select artisans from
different villages. About 10–12% of the total number of units was covered per village and over
200 respondents - artisans / tanners / flayers / livestock rearers / agencies were interviewed for the
study.
RMoL-BASIX 3
5. Findings and Analysis
India is endowed with about 10% of the world’s leather raw materials and exports constitute
about 2% of world trade. India exports leather products to countries such as the USA, Germany,
the UK, Italy, Spain, Hong Kong, France, Canada, Russia and Australia amongst others in the
form of:
Leather footwear – casual shoes, sport shoes, safety boots, slippers and sandals
Footwear components – shoe uppers, soles, sandal uppers, insole and socks lining
Leather garments – jackets for men and women, overcoats, motorbike jackets, garments
for children and adults
Leather goods – wallets, purses, handbags, belts, key chains, passport folders, spectacle
cases, hand gloves, portfolios, suitcases, harness and saddle items.
Based on the primary data collected from the field regarding flayers, tanners, artisans,
livestock rearers, marketers, technical agencies, implementing agencies, design agencies, etc
analysis has been given under these headings only. The data has been collected with the help of
structured and unstructured schedules and collated through tabulation method. Analysis is purely
based on the tables generated with the help of primary data from field.
Preliminary discussions with artisans from villages in the leather cluster indicate that there
are 28 villages in Jaipur with about 35 or more juti-making units.
RMoL-BASIX 4
f) Tools: They use very basic tools like scissors, rampi, ari and rope, but they lack the basic
knowledge of executing flaying, thereby causing damage to the hide. This in turn lowers
the returns.
g) Wages: Flayers are sometimes paid a token amount by the owner of the animal for lifting
the dead animal from the village. Payment is around Rs.10 or Rs.20 per animal. They are
employed for only part of the time because the number of dead animals is not enough to
provide full-time work.
Factors affecting the flaying sector:
1. Due to social factors, traditional flayers are leaving this occupation resulting in
the entry of new and inexperienced flayers which in turn is affecting the quality of
animal hide. There is neither any program nor attention, either from government or
from non government organizations. And the irony of the fact that we can not even
imagine having skyscrapers without having a good foundation, which is a good clean
hide.
2. Poor management of dead animals. Most of the times, flayers do not have
adequate means to transport the animal to a suitable place for flaying. Moreover they
don’t take much precaution to decompose the leftovers which is causing discern in
the society against the community.
5.2 Tanners
The normal form of tanning in Rajasthan is vegetable tanning. Vegetable tanned leather hides
are generally used for the tough leather shoes called jutis. Other uses are masks, parts of belts and
occasionally for bags, etc. The smoother and better quality leather popularly known as madras
leather is imported into the state and products made from them are mojaries, belts, purses, etc.
Such products are often decorated with embroidery from coloured threads, zari, cloth and small
metals. Sales of products from vegetable hides, especially the jutis are mostly in the village,
surrounding markets and bought by villagers.
RMoL-BASIX 5
understand. Out of the total respondents there are 20 percent who take loan from their
relatives. Although the banks are there but then also most of the respondents seek loan
from money lender for their needs. The reason for moving to moneylender is that they
don’t need any collateral security which the tanners are unable to provide. 60% of the
respondents avail loans for medical reasons. 20 percent of the respondents who avail loan
for the production purposes while other 20 percent of the respondents take loan for
consumption purposes i.e. for marriage.
5.3 Artisans
It is estimated that nearly 90% of the leather artisans in Jaipur, Nagaur and Ajmer districts
undertake the production and sale of traditional leather jootis. Vegetable or country tanning of
leather, which was once a predominant activity in the sub-sector, is now limited to less than 10%
of the artisans. The main reasons for this are low returns from this activity and leather supplied to
chrome tanneries offer relatively better prices. Traditional jootis also known as Jaipuri jootis use
country-tanned leather for the sole. The upper portion of the jooti uses either chrome- or
vegetable-tanned leather. The market penetration of such jootis is mainly restricted to rural areas
of Rajasthan. The rural market for jootis has been shrinking because of the competition from low-
cost polyvinyl chloride (PVC) soled shoes and slippers.
a) Education: A considerable 40 percent of the 150 artisans who were interviewed are
literate and the remaining 60 percent are illiterate. The reason for a considerably higher
literacy rate is through government which is providing free education to the children of
the community.
b) Asset distribution: Out of the total respondents, 32 percent own cattle. Communication
facility is limited to only 12% of the respondents while 16% have TV in their homes.
Only 2% have two wheelers and 4% of the respondents have cycles.
c) Health: Out of the total respondents 13 percent of the respondents are facing the problem
of Chicken Guinea while 10 percent of the respondents are suffering from TB. The other
health problems allied within the respondents are problems of backbone, asthma,
swelling of leg. As the respondents are not perfectly well due to the above problems, it
consumes both their energy and money which in turn hampers their growth and
productivity.
d) Secondary occupation: Majority of the respondents also depend on a secondary
occupation like working for anganbari, embroidery, tanning, trading, which supplements
their primary income. 705 of the respondents are involved in such secondary occupations
while the remaining 30% have no secondary source of income.
e) Gainful employment: Only 47% of the total respondents are gainfully employed
throughout the year which is less than half of the total interviewees. 30% have an access
to income for 8-10 months. The dearth of work is pertinent as 19% of the total
respondents have a source of income for 4-7 months. For the rest of the year their
survival is really a matter of fear and concern to them. The 4% of the total who claim to
RMoL-BASIX 6
get an employment of just 1-3 m are those who really fall much down in the theory of
existence and are severely marred by the existing competition.
f) Daily wages: 50% of the total respondents earn more than Rs. 125 everyday while 31%
earn in between Rs100-125 everyday. 14% earn in between Rs. 75-100 per day.
g) Skill Training Program: Only 305 of the total respondents have undergone skill training
programs while 70% have never been exposed to any kind of skill training and
development programs.
h) Bank account: Only 33% of the total respondents operate a bank account while the
remaining 67% have no bank account. The feeble economic condition of the artisans
hardly leaves any scope for savings.
i) Loan details: 68% of the total respondents depend on loans to meet their consumption as
well as production needs. Out of these 66% of the respondents depend on their relatives
to meet their loan needs. Only 10% of the total respondents avail loans from banks. 9% of
the total respondents depend on various other sources like traders and other informal
sources. They avail loans for purposes like purchase of raw material, agriculture,
festivals, domestic reasons like marriage and also for medical treatment. 51% of the
respondents who have availed the loan facility have repaid the loan along with the
interest while the remaining 49% have been unable to do so.
j) Work pattern and outline: 37% of the total respondents are involved in Mojari making
while 34% are involve in the surface ornamentation work. 13% are involved in
kashidakari work. Majority of artisans work on a piece wage basis while few of tem work
on contractual or commission basis.
k) Women employment: Of the total respondents, 66% of the wives of the interviewees are
involved in some or the other process of leather article making like kashidakari or
embroidery. 32% of the women counterparts are non-participative.
l) Children’s contribution in work: 71% of the total respondents say that their children do
not contribute to their work while 29% say that their children do contribute in their work.
m) Working hours: 38% of the total respondents work for 8-12 hrs while 14% of the
respondents do not work at all. 31% of the total work for 4-8 hrs in a day while 17 %
work for less than 4 hours in a day.
n) Land holding details: 31% of the total respondents have irrigated lands. 50% of the total
respondents have more than 5 acres of land. This land is not irrigated and does not
contribute to the income of these artisans. Only 15% of the respondents have land
holdings in between 2.5-5 acre and have partially irrigated land which contributes to the
secondary source of income for them. 4% of the respondents have less that 2.5 acre of
land.
o) Access to drinking water: 70% of the total respondents have access to portable drinking
water which is available to them from tube-wells and wells. In some households water
supply connection is also available. The remaining 30% have no access to a proper
source of drinking water and therefore have to largely depend on tanks (stored water).
p) Sanitation: Only 10% of the total respondents have a proper sanitary system in their
households. The remaining do not access to proper sanitary facilities. The existing
facilities even if they exist are kuccha or temporary in nature.
q) Working pattern: Of the total respondents, 82% of them are working on an individual
basis maintaining an individual link with the market and traders while only 18% are those
who are working in a group.
Artisans mainly producing mojaries want an additional source of income. They want to
undertake the production of leather goods in case there is a slack in the market for mojaries in
the future. Artisans who are involved in the production of traditional jootis perceive it as an
RMoL-BASIX 7
alternate livelihood which could provide them with a better source of income as compared to the
earnings from traditional jooti making.
RMoL-BASIX 8
h) Investment on an animal per day: In case of cows and buffaloes, an average of Rs.30-
40 is spent everyday while in case of goats and sheep; the average expenditure varies
between Rs.15-25.
i) Animal deaths: The trend of death among sheep and goats are higher than in those of
cows and buffaloes. The livestock is very sensitive to extreme temperatures and die when
exposed to heat shocks. Many animals also die sue to diseases for which they have not
been immunized. Of the total number of respondents, 45% are those whose livestock
have not died in the past one year while 55% are those whose livestock have died due to
various reasons in the past one year.
j) Social taboo: Of the total respondents, 36% feel themselves as an outcaste. 38% are
considered to be untouchables while the remaining 26% suffer from various social
stigmas in the community.
k) Education of children: 55% of the respondent’s children are literate as they have
attended primary schools, But they do not know anything beyond writing their names.
45% however are illiterate and have never gone to school.
l) Awareness regarding government schemes: Only 30% of the total respondents seem to
be aware of the government schemes for their aid but the remaining 70% have never
heard of anything like government schemes for their aid.
RMoL-BASIX 9
Udaipur have taken up the roles of traders of finished goods. They collect orders from
shopkeepers in Delhi and distribute among the artisans of Rajasthan and take back the final
products.
6. Technical Agencies
2. Vegetable Tanning
The most important organic tanning agents are the vegetable tannins present in tanning
liquors. They are prepared from certain parts of plants by aqueous extraction. Their tanning
power has been appreciated for a long time and Babylonian texts have recorded their use.
Vegetable tanning materials occur in nearly all forms of plant life. They are used commercially
where the amount of tan is high and large quantities can be extracted economically. Other
considerations are color and particular properties of the tan extracted.
The process of leather product making followed at the institute involves the following processes:
Paper pattern
RMoL-BASIX 10
Embroidery on leather
Footwear
Lasting
Soling
Finishing
Surface enhancement
The various machines required for the leather goods making purposes are:-
Stitching m/c
Single needle m/c
Double needle m/c
Multiple needle m/c
Skiving m/c
Cylindrical arms m/c
Post bed lifted base for 3rd stitching
7. Major concerns
Like every other economic market sector, the leather sector has its own share of causes
and concerns to deal with. The artificial leather has deteriorated the market. The difference
between the natural leather product and the artificial leather product has become insignificant.
The process of determining the design that is moving in the market is to identify the need and
briefly deriving the collected information on ergonomics and finishes. To forecast designs, the
trends are aired from Italy and Germany one and a half years in advance at international fairs. For
design and trend a lot depends upon retailers and current affairs.
The resources in India are limited and due to negligible documentation there are no
evidences of the past and therefore no predictions can be made. Automation in leather is not
successful. Only 16-17% of the total demand can be fulfilled. Mojari supplies vis-à-vis demand
will always remain at a large gap due to the inability of the artisans to produce according to the
demand. Cost increases due to processes which are expensive. Standardization of products is not
feasible. Aesthetic value of the crafts, contemporary designs and use, available raw materials
must be used like textile instead of leather. Due to open market and technology interventions and
availability of cheaper substitutes makes the genuine craft suffer.
Goals:
RMoL-BASIX 11
Design and market intervention
Ensure enhanced and regular incomes for traditional artisans
Generate sustainable employment for them in rural setting
Create an economical production base with minimum overheads for the marketers
Stakeholders:
Youth
Women
Rural Artisan Households
RUDA
UNDP
NLDP
Government of Rajasthan
National Institute of Design
Description:
This project is geared to development of traditional leather shoes (Mojari). The project tries
to achieve its objectives by up-gradation of the product in consonance with the needs of the
market. Artisan households are provided with:
Conforming patterns to impact more accuracy and enhanced comforts
Contemporary styles and designs dovetailed with the existing skills
Appropriate mechanization in processes of stitching and finishing
Use of alternative materials
Concept of packaging for organized marketing
RMoL-BASIX 12
the state. These parks should be run by the association of industries having stakes of
artisan representatives also.
Provision of skilled human resource to the leather sector can be done through
establishment of training units by private sector units. On the other hand, the state
government should provide capital grant for facilities and also tapering operating support
to such private training institutions.
Establishment of leather industry estates will help in improved local availability of
varieties of high quality leather and also systematize the process by establishing an
ancillary relationship between large and small units.
Emphasis should be laid on development of related and supporting industries like those
for marketing and product design. For the market related services, the state govt. should
ask the council on leather exports to establish an office in the state. As this may not be
justifiable at this stage due to little exports from Rajasthan, the state may underwrite three
years’ expenses at the office. For product design, the state govt. should ensure that leather
is one of the main areas of attention by the Indian Institute of Craft & Design (IICD), in
the state.
The state govt. should also ask the CLRI to set up an extension centre for leather in
Rajasthan. This center should focus on vegetable tanning, as also on sheep and goat skin,
which are abundant in the state.
As many leather workers tend to live together in same vicinity, they join for many tasks
like purchase, sales, negotiations with bulk leaders, but in an informal grouping. These
could be converted into more active and stronger alliances under formal or even informal
organizations. For this to happen, it is important to involve NGO’s.
RMoL-BASIX 13
Tanning Process in a Nutshell Annexure I
RMoL-BASIX 14
Composition of RMoL:
RMoL-BASIX 15
3. Dr N S Hegde, Chairman, BAIF, Pune Member
4. Dr Tushaar Shah, International Water Management Member
Institute
5. Shri V K Ladia, CMD, Shree Rajasthan Syntex Ltd. Member
Dungarpur
6. Shri Rajiv Jain, Managing Director, M/s Sambhav Member
Gems, Jaipur
7. Shri Dilip Baid, Chairman, Federation of Rajasthan Member
Handicrafts Exporters Association
8. Shri Brij Mohan, ED (Retd.), SIDBI, Lucknow Member
9. Shri Vikram Golecha, Ex. Chairman, CII, Member
Rajasthan Chapter
10. Shri Arun Goyal, Director, Academy of Business Member
Studies, New Delhi
11. Shri Ravi Srivastva, Professor, Center for Regional Member
Development Studies, Jawaharlal Nehru
University, New Delhi
12. Shri Vijay Mahajan, Chairman, BASIX Principal Advisor
13. Shri D P Bagchi, Former Secretary, SSI, GoI Principal Advisor
14. Shri Apurva Kumar, ED, Hotel Clarks Amer, Member
Jaipur
RMoL-BASIX 16