UP carpet exporters go virtual, focus on domestic market as orders dry up

Most units running at 20-15% capacity, many are facing payment issues for orders already executed

Manufacturing units in India’s biggest carpet belt of Bhadohi of Uttar Pradesh have started work after more than two months of lockdown due to Covid-19. However with almost no overseas orders these units are functioning at just 20-25 per cent of capacity. The nearly 100 per cent export based UP handmade carpet industry is also facing a payment crisis for orders it has already executed. After two weeks of opening up, manufacturing units have no more than a handful of workers and the showrooms are deserted.

Carpet exporters in UP’s Bhadohi district say chances of getting locked payments from the overseas customers are remote and there are hardly any fresh orders. Markets and showrooms in the US and Europe, the biggest markets for Indian handmade carpet, have been closed for quite long due to the pandemic. Carpet fairs and buyer-seller meets have either been postponed or cancelled. Under such circumstances, the Indian carpet industry is now planning to hold virtual fairs.

According to Siddhnath Singh, chairman, Carpet Export Promotion Council (CEPC), manufacturers did try to start units after June 1, the day unlock-1 began, but with no orders in hand it has become difficult for them to carry on. He said that of the Rs 12000 crore export turnover of Indian handmade carpet, nearly 50-60 per cent goes to USA and 25-30 per cent to the European countries.  Covid crisis has hit US and Europe badly where the markets are closed for the last three months. The international flights are discontinued and in the last two week barely few of the old orders have been shipped via cargo.

The CEPC chairman said that barely one per cent of total business of handmade carpet is from the domestic market. In the present conditions, the carpet manufacturers would try to increase their share in the domestic market. He said that an effort in this regard was started last year by organizing carpet fair in Mumbai. This year too, the CEPC had planned similar fairs in Mumbai, Hyderabad, Banglore and Chandigarh but it has been postponed now due to the ongoing crisis.

Siddhnath Singh informed that the CEPC has now decided to organize virtual fairs for the overseas customers. Very soon, the carpet exporters will interact with the buyers in these virtual fairs. However not very upbeat with the idea, a carpet exporter said that at least it would help them getting some business.  

Listing challenges before the carpet exporters during the ongoing Covid crisis, CEPC chairman said that getting locked payment is a big issue. The orders have been executed but the payment is awaited. Besides many of the importers are cancelling orders. The carpet industry, unlike others is not facing work force crisis. 'The skilled workers are very much here and barely few of the non-weaver engaged in other works have left for their villages. But with no work there is no need of them’ said CEPC chairman.