Kashmir Carpet Industry Losing Sheen
Not long ago, the carpet industry in Kashmir was witnessing steady growth due to the increasing demand and robust sales in the global and domestic markets. The total sales of Kashmiri carpets, including exports, were estimated to be around Rs 500-600 crore last year. A year back, handlooms across the valley were flooded with orders for exporting silk and woollen carpets to buyers in the United States, Europe and West Asia.
However...
this does not seem to be the case currently. Reeling under the impact of the economic downturn, Kashmir's carpet industry is gradually losing its brightness. The centuries-old carpet industry of the valley is going through a lean phase as sales have slumped and margins have narrowed drastically, posing a threat to the sustenance of SMEs in the sector.
With demand having plunged considerably over the past few months, nearly 200,000 weavers in nearly 30,000 handlooms across the valley have lost their jobs. Traders and market analysts anticipate that apart from the weavers, many others who depend on this 700-year-old industry like dyers, washermen and people engaged in the processing units also stand to lose their jobs, given the current market conditions.
Furthermore, a number of small scale units that produced exquisitely designed silk and woollen carpets for international buyers have stopped production as a result of lower export volumes. This year, it is feared that exports from the sector would find it hard to maintain the same revenue earnings of Rs 500 crore as last year. Under the tough economic conditions, sales from the sector are likely to reach Rs 200 crore. Given the current market scenario, government initiatives like financial and marketing support could serve to assist small scale units in the carpet sector to recover some of the loss faced.
Solutions
Though the removal of the value-added tax (VAT) for the sector has given them some relief, there is still need for the government and associated trade bodies to take immediate measures to prevent the crisis from aggravating further. Extension of soft loans to weavers, manufacturers and exporters and technical support from the Indian Institute of Carpet Technology (IICT) could better help sustain the sector during this recession.
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About the Author:
David Parks is a well known author and has written articles on B2b Website and B2b Marketplace, suppliers, Manufactures and many other subjects.
