Agra's footwear industry claims crisis will cause upto 25% dip

AGRA: As the conflict in West Asia rages on, the footwear industry in Agra is bracing for its impact as the global supply chains are affected. Due to the disruption of trade routes and the conflict, a decline in business to the tune of 20-25% is being feared by stakeholders.Agra exports footwear worth around Rs 4,000 crore annually to markets across the world, and trade worth Rs 250-500 crore is with Israel and West Asian countries alone. Sanjay Goyal, president of National Chamber of Industries and Commerce, told TOI, "Higher transportation costs will push up the prices of Agra's products in the global market, making competition with countries like China and Vietnam even tougher."

Risks for shipping vessels have increased along the trade routes passing through the Strait of Hormuz and the Red Sea. As a result, exporters said they will now have to send consignments via the route around the Cape of Good Hope in South Africa. Compared to the usual route, deliveries will take an additional 30 to 50 days, said a shoe exporter, adding that "freight costs are expected to increase." Agra exports large volumes of high-end leather shoes and safety shoes, which are in high demand among European countries and industrial sectors.

Puran Dabur, a major shoe exporter of Agra, said the current conflict is very bad for exports. "Due to disruption in the trade routes, there will be an additional 12-13 days for goods to reach their destination. The cost of export will shoot up. If this situation continues, buyers may divert their orders to other countries. That will directly impact the local industry," he said.