By Girish Kumar Dubey
Carpet industry workers in Bhadohi district of India's northern Uttar Pradesh state, the biggest carpet-manufacturing centre, fear that their export orders will be cancelled due to the credit downgrade of the US by Standard & Poor.They believe that the downgrading will have a direct impact on the carpet industry, since two-thirds of the exports come from Germany and United States of America."We have a huge fear in our minds because the carpet is a luxury good and it is generally purchased by the rich and the upper middle class. This is not a necessity. Due to the US debt crisis, the carpet industry here is severely affected. So, the common man will automatically reduce his expenditure on luxury goods. The demand of these carpets would gradually fall. In fact, the peak season is nearing, when buyers generally purchase carpets. The carpet season generally begins from September onwards and goes on till March. The demand for carpets is anyway low in summers," said Ashok Kapoor, a carpet exporter.
The United States lost its top-tier AAA credit rating from Standard & Poor on Friday (August 11) in an unprecedented blow to the world's largest economy in the wake of a political battle that took the country to the brink of default.Traders and weavers in the state's Bhadohi district, which is famous for carpets, said that they wanted the government to help them regain the customers lost due to the US debt crisis."The recession in US has affected us. In fact, the talks about AAA rating have just begun, but the markets have not been stable for a very long time now. We feel that if this slowdown continues for long, then it would be very difficult for us to run this industry.
This is due to two reasons. Firstly, it is very difficult to get any payment from buyers. Secondly, wholesalers give the products to retailers on a consignment basis. This happens only in the carpet industry. We feel that this practice should be immediately stopped," said Kailash Narayan Baranwal, a carpet exporter.According to analysts, the luxury goods sector would be the most affected.In the wake of the global economic slowdown, the small exporters are being wiped out while large exporters are struggling to survive.The traders also said that government should reconsider the taxes levied on them.Varanasi is famous for its hand woven carpets all over the world.The carpet industry, being highly labour intensive and decentralised, is an important source of employment and a foreign exchange earner.According to estimates, there are 1215 carpet manufacturing units in India, out of which 190 are in the organised sector and the rest are in small-scale industry sector.
Carpet industry workers in India's northern Uttar Pradesh state, the biggest carpet-manufacturing centre, fear cancellation of export orders due to the credit downgrade of the US by Standard & Poor.
PLEASE NOTE: THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL
BHADOHI, UTTAR PRADESH, INDIA (AUGUST 12, 2011) (ANI-NO ACCESS BBC)
1. A WORKER WEAVING A CARPET
2. A WORKER SITTING
3. A WORKER WEAVING A CARPET
4. A WORKER DESIGNING A CARPET
5. WORKERS SITTING AROUND A CARPET
6, A WORKER DESIGNING A CARPET
7. A WORKER SEWING A CARPET
8. (SOUNDBITE) (Hindi) ASHOK KAPOOR, A CARPET EXPORTER, SAYING:
"We have a huge fear as the carpet is a luxury good and it is generally purchased by the rich and the upper middle class. It is not a necessity. Due to the US debt crisis, the carpet industry is severely affected. So, the common man will automatically reduce his expenditure on luxury goods. The demand for these carpets will gradually fall. In fact, the peak season is nearing, when buyers generally purchase carpets. The carpet season generally begins from September and goes on till March. The demand for carpets is anyway low in summers."
9. WORKERS SEWING A CARPET
10. A WORKER MAKING A CARPET
11. WORKERS SITTING AROUND A CARPET
12. A WORKER HAMMERING NAILS INTO THE CARPET
13. (SOUNDBITE) (Hindi) KAILASH NARAYAN BARANWAL, A CARPET EXPORTER, SAYING:
"The recession in US has affected us. In fact, the talks about AAA rating have just begun, but the markets have not been stable for a very long time now. We feel that if this slowdown continues for long, then it would be very difficult for us to run this industry. This is due to two reasons. Firstly, it is very difficult to get any payment from buyers. Secondly, wholesalers give the products to retailers on a consignment basis. This happens only in the carpet industry. We feel that this practice should be immediately stopped."
14. CARPETS ON DISPLAY
15. ROLLED CARPETS IN A ROW
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