An Analysis on The issues surrounding Kashmir Carpet Industry .

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Kashmiri Carpets
Fort of the Indian oriental carpets and rugs
Presentedby : AditiBhatt
C 2
SIMS

2. CARPET INDUSTRY OF INDIA
Indian Handmade Carpet Industry is ranked No. 1 in the international market ,market share of
35% of total world import of Handmade Carpets, Employs over 2 million rural workers.
Export oriented , 1215 carpet manufacturing units recorded and of that 190 are in the
organized sector and the rest are in small scale industry sector.
Though it experienced a major set back during 1996 -2000 due to the involvement of the
child labour, it has over come the jolt by implying special measures like "rugmark" and
"kaaleen " labels that ensure the non involvement of child labour.
“Hand made carpet of Bhadohi” have been granted the Geographical Indication (G.I.). 2

3. QUALITY STANDARDS
Kaleen- According to CEPC promotional material, the
label signifies that “the user is abiding by the code of
conduct adopted by the Carpet Export Promotion Council
for the eradication of child labour.
Step- Ensure market opportunities and transparent
business,better working condition and remunerations for
adult workers.
Care and fair-To ensure the medical, educational and
career opportunistic needs of the labours and elimination
of child labour. 3

4. CARPET BELTS IN INDIA
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5. MAJOR CARPETS OF INDIA
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Hand Knotted Woollen Carpets
Hand Woven Woollen Carpets
Hand Tufted Woolen Carpets
Handmade Woollen Dhurries
Pure Silk Carpets
Staple or Synthetic Carpets

6. INTERNATIONAL MARKET ANALYSIS
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31%
24%
21%
14%
10%
Market Share(%)
USA
Germany
United Kingdom
Canada
France
1,443,432
5,144,650
1,100,424.00
266,286
6,471
78,201
0 2,000,000 4,000,000 6,000,000
HAND KNOTTED WOOLLEN CARPETS
HAND TUFTED WOOLLEN CARPETS
HAND WOVEN WOOLLEN CARPETS
HANDMADE WOOLLEN CARPETS
PURE SILK CARPETS
STAPLE OR SYNTHETIC CARPETS
Total quantity

7. EXPORT ANALYSIS OF INDIAN CARPETS
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Carpet Type Total
Exported
Worth
Export Recipient Country
Hand Knotted
Woollen Carpets USD 120,006,571
US - $34,564,724, Followed by Germany
and Turkey $31,648,155 and $
19,891,092
Hand Tufted
Woollen Carpets USD 133,052,946
US- $107,608,090 ,followed by UAE and
UK $6,969,663 and $5,631,964
Hand Woven
Woollen Carpets USD 30,848,584
US -13,114,276 , followed by Australia
and United kingdom $3,233,748 and
$3,037,270
Handmade Woollen
Carpets USD 8,414,698
UK- $1,845,397, followed by US and
Germany $1,759,255 and $1,267,864
Pure Silk Carpets
USD 1,847,319
Russia- $748,311, followed by US and
Germany 326,537 and USD 231,448
Staple or Synthetic
Carpets USD 4280711
US- USD 814,155, followed by Turkey
and UAE USD 765,326 and USD 615,944
INFERENCE:
• The Data on the Export
carpets shows that United
States of America tops the list
as the maximum importer of
Carpets made in India.
• Kashmir being the major
manufacturer of Carpets made
of pure Silk lags behind
because of the high cost of
production .
• Russia is the highest importer
of Silk Carpets. Hence, Carpet
export promotion corporation
must lay more importance on
this area to increase the total
export .

8. COMPETITOR ANALYSIS
Chinese carpets are emerging as the biggest threat in terms
of pricing and volumes
Owing to cheap prices of the foreign carpets from Turkey,
Belgium and China, the demand for the Kashmiri carpets
have decreased by 20 per cent in the domestic market
Prices per square feet of Kashmiri carpet range from Rs
1000 to Rs 2000 while cost of Chinese carpets range from
Rs150 to 400 per square feet 8

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Strengths
1.Low labour cost and innovative carpet designs
2. Low cost raw material, Availability of skilled
labours
3. Made up of Pure silk and wool, Hang Woven
4. High durability due to its high knottage which
makes these carpets stiffer and firmer
Weaknesses
1. High interest rates as compared to
neighbouring countries
2. Under-financed handicraft producers and
Traders/Exporters
3. Cheap prices of foreign carpets
4. Channels for local selling and marketing is
very low
5. Highly unorganised sector- Access to local as
well as foreign customers should be simple and
easy
Opportunity
1.Improving the productivity and quality of raw
materials at reasonable price
2. Improvement in the R&D for improvement of
fibre quality
3. Involve US importers, enhance the scope
through road shows ,fairs & exhibitions.
5. Tie up with wal-mart and other retailer to
have a huge customer base
Threats
1. Artisans are forced to quit this industry due
to recession
2. Low end carpets, made in China is driving the
market and the growth of the carpet industry
3. Stiff competition from Pakistan and China
4. Child Labour has made carpet industry a
defamed industry
SWOT

10. PRESENT SCENARIO
• Largest financial institution in Kashmir announced an interest-free and mortgage-
free 18-month bailout package for carpet industry artisans
• The competition within and between the producing countries have depressed
export prices, while competition between importers and retailers have cut into
trade margins
• World flooring and carpet demand will rise 4.9 percent yearly to 18.6 billion
square meters in 2016. Hence, India must concentrate more on the exports of
Kashmiri carpets as it is predicted that the Asia- Pacific region will see the most
rapid growth
• Sellers/Traders are into the Profits of the Manufacturers and Artisans
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11. SUGGESTIONS
• GOVERNMENT MUST COME FORWARD TO ASSIST THE INDUSTRY WITH SUBSIDIES TO MAKE
CARPET COMPETITIVE IN INTERNATIONAL MARKET
• REMUNERATION TO WEAVERS AND ARTISANS SHOULD BE SUITABLY INCREASED TO BRING IT
TO A LEVEL HIGHER THAN MNEREGA WAGES
• MDA ASSISTANCE SHOULD BE MADE AVAILABLE FOR CARPET EXPORTERS TO UNDERTAKE
OVERSEAS VISITS FOR THE PURPOSE OF MARKETING, PARTICULARLY IN NON-TRADITIONAL
AND DEVELOPING MARKETS
• PUBLIC- PRIVATE PARTNERSHIP TO IMPROVE INFRASTRUCTURE, POWER SUPPLY ETC.
• ENCOURAGING ORGANISATIONS LIKE CEPC, AICMA TO PROMOTE INDIAN CARPET BY
INCREASING THE DEMAND
• INNOVATIVE PRODUCTS RANGE WITH LOWER VOLUME COULD BE A SUCCESS MANTRA FOR
INDIAN CARPET INDUSTRY -REGULAR RESEARCH & DEVELOPMENT, PROPER TRAINING TO THE
ARTISANS IS REQUIRED
• AGGRESSIVE MARKETING IN EMERGING MARKETS IN DEVELOPING COUNTRIES AND CREATING A
STRONG HOLD IN THE DOMINATING BUYERS LIKE USA & GERMANY
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