Israel-Hamas war: Leather exporters in Kanpur may suffer significant losses

The present Israel-Hamas war has caused concern among leather exporters in Kanpur, Uttar Pradesh, as it has caused doubt over orders worth crores of rupees. Leather exporters anticipate massive losses in the upcoming days.

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Kanpur is well-known for its leather and leather items, which are exported worldwide. However, Kanpur merchants are now concerned since a major portion of these leather products are being exported to Israel.

Safety shoes and boots, backpacks, and saddlery are among the leather products sold to Israel. According to a CNBC Awaaz report, some exporters' orders worth crores have been postponed due to the prolonged crisis.

Orders worth of Rs.400 to Rs.500 crore is ready to export

Exporters are not receiving payments as a result of the war. Aside from the shipped products, orders that were already ready are also held. The orders are ready for shipment, but the producers are unable to dispatch them, according to the report, and the orders total between Rs 400 and Rs 500 crore.

According to CNBC Awaaz, Yashveer Singh, the manufacturer of safety shoes, stated that the orders that were meant to be transported to Israel are ready and are currently being shipped. However, due to the war, shipping has been halted, and a large order has become stuck. He further mentioned that several other exporters were in similar situations.

Payment to the exporter is being withheld

Furthermore, Singh stated that some of the products have already arrived at their destinations, but payment has yet to be given due to the conflict.

The war between Israel and Hamas will cause a crisis in exports to European nations, according to Alok Srivastava, assistant director of the Federation of Indian Export Organization.

He said that payments of about Rs 400 crore of the traders have been delayed and the losses will mount if the situation worsens. Goods from various manufacturers are getting stuck and many are still waiting to be paid.

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