The Council for Leather Exports in India has announced that in the quarter from April to June, leather exports from the country rose by 5.1 percent to $811 million. The chairman of the CLE, M. Rafeeque Ahmed, noted that despite the growth and continuing demand in Europe for Indian leather products, producers are reporting lower margins, as the costs of raw materials are rising while product costs remain the same. Manufacturers are also keeping an eye on the exchange rate with the euro, which is currently in India's favor but its instability is worrying. In the first quarter of the fiscal year, exports of leather footwear grew by 5.2 percent to $316 million; leather garments jumped by 18 percent to $79 million. The Indian government wants the leather industry to have sales of $8.5 billion by 2013-14; this would mean annual growth of about 26 percent. In the 2010-11 fiscal year, the total growth rate was about 13 percent.