CHAPTER - I

GROWTH AND DEVELOPMENT

OF CARPET INDUSTRY IN KASHMIR

1 2

GROWTH AND DEVELOPMENT OF CARPET INDUSTRY IN KASHMIR

With a view to understanding the problems and

prospects of the carpet industry in the proper perspective,

the first section of the present chapter throws light on

the historical background of the industry in Kashmir.

The second section briefly highlights the role and

importance of this industry in the economy of Jammu and

Kashmir, so that the reasons for the present study are

ju stified .

HISTORICAL PERSPECTIVE

The history of hand-knotted carpets is as old

as the human civilization . Generally speaking one can

submit without great risk of contradiction that the carpet

has shown in each civilization a very precise degree o f

1evolution. C:arpet weaving has been an endeavour that

has fascinated man through centuries. I t was around

3,000 years B.C. in the region between Mesopotamia and

2Mediterranean basin that textile weaving originated.

CHAPTER - I

1. Robert de Calatchi, "Oriental Carpets", Charles E. Tuttle Company Publishers, Rutland, Vermount and Tokyo, Japan (1967 ), P . 15.

2. Ib id P . 15.

13

The inventions of twisted woollen thread and vertical

loom by the Egyptians as also Sumerian art of basket

weaving largely contributed towards carpet weaving,

one o f the directions in which the textiles branched o ff .

Having taken birth in nomadic tribes living in tents

in the regions between Euphrates and Tigris to

Mediterranean basin, deltas o f N ile and banks o f Volga,

the prim itive carpet was a result o f constant nerfaction

and development over the preceding stages in resoect

3of both design and technique.

The earliest known carpet was discovered in

1949 by the Russian archaeologist Rudenko, in a

royal tomb at Pasyryk in the Atai mountains on the

border o f Siberia and outer Mangolia. The International

Wool Secretariat has established that the rug o f Pasyryk

4could have come from Susa in Persia in the 6th century B.C.

However, most o f the researchers are o f the opinion

that the carpet may have had its origin in Egypt. The

3. Sapru, M. L . “Carpet Weaving - A World Perspective"C raft - A Publication Devoted to the Arts and Crafts of Jammu and Kashmir, Directorate of Handicrafts, Jammu and Kashmir, Srinagar 1985) P . 20.

4. Robert de Calatchi, Od . cited, P . 16.

14

research shows that smooth surfaced carpets and tapestry

were used as far back as 1300 years B.C. in Egypt and

5other parts of the near east.

Mesopotamians, ancient Iraqis , called Sumerians,

came in contact with Egyptian civilization and learned

the carpet weaving from Egyptians. The weaving art then

6travelled tr> Persia through the waves o f Sumerian trade.

Persia proved to be the real nativeland for the oriental

hand-knotted carpets. The conquest of the Persians by

the Seljukes, a Turkish nomadic people in the twelfth

century is very important in the history of Persian

carpets. The Seljuks seem to have been sensitive to all

arts and the Turkish influence was strong and long

7lasting,,

With the coming of the Safavid dynasty in

Persia in the early Sixteenth century a major development

begacn in the design and technique o f carpet weaving.

More refined tastes encouraged more intricate designs.

The Safavid dynasty directly encouraged the establishment

o f carpet weaving centres. Skilled village craftsmen

5„ Kuckiloo, R.A . "Carpet Industry in Kashmir" Kashmir Today (January-Feb. 1980), P . 3.

6. Ib id , P . 3.

7 . IDS, 19 82, "Contribution o f Handicrafts and Handloomsto India Development" Product Series Paper 2, industrial Development Services, New Delhi, P . 1-3.

15were set to work under the guidance of court miniaturists

and craftsmen. Shah Abbas, who ruled Persia between

1550 to 1629 A .D . took special measures to promote the

production of magnificent Persian carpets. Being a skilled

weaver him self. he established factories all over Persia,

•tonot only to cater the requirements o f h is new palace at

Isfahan but also to meet the increasing demand of carpets

8in Western Europe.

With the spread o f Islam in the 7th century A.E>.,

carpet weaving received a tremendous boost. The hjuslim

missionaries while carrying the message of Islam to far

o ff areas, carried also the art of carpet weaving to

areas like Central Asia and India . The art reached even

to China through the famous silk rpute. in this way the

powerful wave of Islamic current took the art to Spain

and France in the West. Such was the impact of Islam

on the art of carpet weaving that i t has rightly been

regarded as a g ift of Islam to the mankind. Hermann

Haack certifies this fact by saying that "West Europe's in­

tercourse with Asiatic lands was virtually cut o ff from

the time o f the fall of Roman Empire until the crusades

began at the end of the eleventh century. I f very

few p ile carpets had reached Europe before the time of

8 . Hermann Haack, "Oriental Rugs" Feber and Feber Ltd.

(London) I960, P . 13»

16

crusades, it seems that from then onwards the tide

9of the trade began to turn.

The ancient historical evidences offer a

convincing proof that oriental carpet is a product of

the cultural interaction and synthesis of some of the

main civilizations of the world. However, Asia has

remained the "melting pot" of all these civilizations

and religions of the world and carpet has also flourished

10in this pot.

The development of the hand-knotted p ile

carpet industry in India coincides with the re^gn of

Shah Abbas in Persia . From Bhudhist and Mauryan times,

India had its own traditional type o f floor covering -

the woven 'durrie ' or 'sutteranji' a p ileless cotton

fabric with a simple design of coloured lines or

geometric patterns.

The p ile carpet was not manufactured in India

until the great Mughal Emperor Akbar ( 1542-65) brought

Persian weavers and designers to the Indian sub-continent

and established factories at Agra, Delhi, Lahore and

9„ Haack, Hermann, Op. C it . P . 17.

10; Calatchi, Robert de O p .C it ., P . 7 .

17

nMurshidabad. The subsequent Mughal Emperors

namely Jehangir and Shah Jahan, known for their strong

passion and love for arts and crafts, patronised the

carpet weaving. As a consequence of their efforts,

production of carpets stepped up. Many centres were

established, where the Indian weavers worked shoulder

to shoulder with their counterparts* drawn from Persia

and Turkistan.

The Persian designs and techniques were cppied

and assimilated to create a new breed o f carpets known

as Indo~Persian or Indo-Isfahan. Development of these

carpets was largely patterned on the Persian style,

because of the fact that the weavers were from Persia.

The looms installed in the sixteenth and early seventeenth

century in India by the Mughal rulers produced some o f the

12finest carpets of superb colour, design and wor)<manship.

Some best specimens o f these early carpets are well

preserved in the Western European museums especially

in the Victoria and Albert museums in London. The

Indian p ile carpet reached the West in the Seventeenth

11. IDS "Contribution of Handicrafts and Handiooms to Indian Development" Product Review Paper: 2,( 1982) P . 1-5.

12. Ib id , P . 1-5.

18

century when considerable trade between Persia and

the West was also building up. The commercial

possib ilities of carpet weaving attracted European

and American firms, which established their own factories

13in India at Amritsar and Mirzapur. The traditional

royal patronage thus changed into a commercial venture

with a thrust to export -thesame to western markets.

CARPET INDUSTRY IN KASHMIR

Against this background, it would be fascinating

to study the origin and growth of this industry in the

State of Jammu and Kashmir. Kashmir had historical

contacts with Persia and ancient trqde routes passed

through it . The influence of Persia on the arts and

crafts of Kashmir has always been strong. The carpet

industry in Kashmir has its origin from Persia with

the result that carpets produced in Kashmir are mostly

o f the Persian type.

Kashmir, famous for its finest carpets in the

country, claims to have introduced this craft into

India at the earliest. The craft history has been

traced over 500 years back.| Ihe belief among history

writers and carpet weavers is that the craft was

13. Sapru, M. L . "Carpet Weaving? A World .Perspective" Craft (1985) Srinagar P. 28.

19introduced by Zain-ul-Abidin who ruled Kashmir from

141423 to 1474 A .D a ^ Timur, distrusted the promise of

allegiance of Sultan Sikander and took his young son

as hostage. The young prince spent seven years at

Samarkand in Turkistan and acquired interest in p ile

carpets. On his return to Kashmir, he brought a few

artisans with him. When he ascended the Throne in 1423

A .D . he la id foundation o f the carpet industry in h is

kingdom. He sent emissaries to Persia and Central

Asia to persuade the artisans to come to settle in

15Kashmir.

Enthusiastic, as he was to popularise this

art in Kashmir, he saw to it that the.se craftsmen are

provided with all fac ilities so that they could in

turn teach this craft to the interested persons o f

Kashmir. H is keen interest in the development o f this

craft , leaves one in no doubt that carpet industry

is thus a g ift o f Muslims to the people of Kashmir.

This is further corroborated by the fact that apart

from carpet weaving, some other crafts and arts

were introduced in Kashmir by Central Asian preachers

and missionaries. '

14. Sufi G. M. D . "Islam ic Culture in Kashmir" Light and L ife Publishers New Delhi (1979) P . 256.

15. Ib id , P . 236.

20

GROWTH UNDER MUGHAL PERIOD

The carpet industry flourished for a long time

after Sultan Zain-ul-Abideen1s reign. But in course of

time it decayed. I t was during the Governorship o f Ahmad

Beg (1615 to 1618 A .D . ) who was deputed by Jehangir to

16 _Kashmir, that carpet industry was revived. During this

period, a Kashmiri muslim named Akhun Rahnuma went to

Mecca to perform Haj pilgrimage. On his way back, he

visited Persia . He got interested in carpet weaving,

picked up the art and started the industry in Kashmir on

17h is return.

During the reign of Jehangir, this art was

well developed. It is heartening to note that in the

Mughal period Kashmiri arts and crafts had reached a high

level of workmanship. All this was possible because

Mughals took keen interest in Kashmir products and

18encouraged the carpet industry in every possible way.

With deterioration of Mughal empire, the industry received

a setback as the patronage of the princely houses was

no more available.

16. Sufi, M. D . , Op. c it . P . 236.

17. Ib id . Op. C it . P . 236

18. Survey Report on Carpet Industry at selected centres(1980) O ffice of the Development Commissioner(Handicrafts) New Delhi, P . 10.

21

GROWTH UNDER SIKH RULE

As to how the industry fared until the early

years o f Sikh rule is not known. I t was only in the first

half o f the 19th century when Maharaja Ranjit Singh

was ruling Kashmir that some facts about the industry

came to light.

During this period, the creative urge and

instinct of Kashmir craftsmen manifested itself in

designing of new patterns of carpets. The beautiful

natural sceneries of Kashmir, particularly Fauna and

Flora soon found an expression involving and developing

new designs of carpets by the Kashmiri craftsmen. Some

o f the carpets produced were s®magnificent in texture and

so superb in design that they at once produced a

magical effect on the mind o f the observers. Maharaja

Ranjit Singh (1918-42) could never fu lfil h is desire

to see the beautiful valley and its landscape, but

when a carpet, a masterpiece of art, which depicted the

natural beauty of Kashmir, was presented to him, i t

produced such a magical effect on his mind that he

rolled himself into the carpet and exclaimed with joy

19that his desire to see Kashmir was just fu lrilled .

19. Baxnzai, P . N. K. "History of Kashmir" Metropolitan, New Delhi (1473) P . 53.

22

I t is said, that this carpet fascinated many

rich people and a regular demand for carpets was thus

created. A number o f these pieces o f art and beauty

manufactured then can even now be found in the State

Museum at Srinagar and with some ancient families o f

v , . 20 Kashmir.

GROWTH UNDER DQGRA PERIOD

The rebirth o f the carpet industry dates back

to the second half of the 19th century when production

was launched on a commercial scale for export markets.

The carpets sent to the Great London Exhibition of 1851

aroused great interest. At this Exhibition, Indian

carpets were universally admired for their oriental

pattern, fine weave and rich colours. One of the finest

carpets produced in Kashmir^having 700 knots per square

inch and a silk warp) for Maheraja Gulab Singh was

21exhibited at this exhibition.

This was a turning coint in creating market for

Kashmir carpets in the west. After this Kashmir carpets

20. Ganju, MvMTextile Industry in Jammu and Kashmir" Premier Publishing Co. New Delhi ( 1945) P . 131.

21. Ganju, M., "Textile Industry in Jammu and Kashmir"P . 132.

23

were exhibited at Chicago Exhibition in 189 3, Paris

Exhibition in 1900 and London Exhibition in 19o2, 1903

and 1906. At Paris Exhibition the Grand Pri'X. award was

22won by a piece of Kashmir Carpet. The most famous

carpet of the world ,— an Iranian masterpiece 1 Ardabil’

now preserved in a London Museum was reproduced in

Kashmir in 1902 and was purchased by Lord Curzon for

£100. Ihe royal palaces in England like Buckingham,

23Windsor etc. patronised the Kashmir Carpets.

EUROPEAN IMPACT

Like the shawl and the silk industry, the carpet

industry witnessed many ups and downs over centuries of

its existence in Kashmir. With the fall of Mughal empire

and the decline of the princely rule in India, the

nobility and the aristocracy lost prestige and wealth.

As a result o f this the carpet industry was seriously

a ffe c te d r ^ In fact the industry was almost going to

disappear completely during the 19th century but for

22. Survey Report on Carpet industry at Selected Centres (1 98 2 ). O ffice o f the Development Commissioner (Handicrafts), New Delhi, P . 11.

23. Bhan, R. K., "Economic Survey o f Carpet Industry in Kashmir" (19 38 ), Srinagar, P „2 .

24. Malik, A. H ., "The Evolution of Kashmirs' Textile Industry" in Hasnain, F. M. "Heritage o f Kashmir" Gulshan Publications, Srinagar. 1^80) P .

the in it ia t iv e taken by some European firms towards the

close o f the century.

The exhibitions held at various places in the

world attracted the attention o f foreign commercial

houses towards the Kashmir carpets and created the

p o s s ib il it ie s o f producing carpets for overseas market.

Chapman was the f ir s t person who attempted the organi-

25sation o f carpet production in Kashmir in 187 6.

Before the establishment o f carpet industry on

commercial basis , the only flourishing and famous

handicraft industry o f Kashmir was that o f 1 Kani Shawl'

According to Moorcraft, the shawl industry during the

fir s t quarter o f the 19th century gave employment to

1 ,2 0 ,0 0 0 persons. The industry., however^ lost its

ground by 187 2 and the number o f employees dim inished.

The v irtual extinction o f 'K a n i ' shawl industry rendered

27thousands o f 1 shawlbafs* jo b less . I t was at this

juncture that Europeans started establish ing carpet

industry in Kashmir on Commercial l in e s . As they were

25. Survey Report o f Carpet Industry at Selected Centres (1 9 8 2 ) . O ff ic e o f the Development Commissioner

(H andicrafts) New D e lh i , P . l i .

26 . Ganju, M.» "Tex;tile Industry in Jammu and Kashmir"

O p .c it ., P . 42 .

27. Lawrence, W .R ., "The Valley of Kashmir", Kesar

Pub ., Srinagar 19 67) P . 375.

already well versed in the textile weaving, the m ajority

o f the Kani shawl* weavers (Khandwaves) switched over tfc,

carpet weaving,, They also introduced in the carpet

industry the 'taleem ' method o f design w riting /prev iously

2©used in ' K a n i ' shawl industry .

*

We have already mentioned that Chapman was the

f ir s t European to attempt the organisation o f carpet

production in 187 6, but h is efforts proved abortive for

at least two years. Immediately a fter him representative

o f Bon Marche o f France came to Kashmir to organise the

29industry but he fa iled to achieve h is ob jective .

Meanwhile, many foreign firms, p a rt icu la rly from the

United Kingdom established their branches in Kashmir

to harness the full p o ten tia lit ies o f the export trade

o f carpets . As a result o f these e ffo rts , the industry

received a tremendous impetus. However, the real

breakthrough in the production and export o f Kashmir

carpets was made by two Europeans namely Mr. C .M .H ad o w

30and Mr. M itchel who gave this industry a new shape.

28. Sapru, M.L., '.'Carpet Weaving: A World Perspective" C ra ft , (Srinagar 1985), P . 29.

29. Survey Report on Carpet Industry at Selected Centres ( 1982) O p .C it .^ P . 11.

30. Ib id , P . 11.

26

These European c a p ita lists invested large sums,

paid better wages and produced carpets on mass scale,

with better raw m aterials . This created a vast market

for Kashmir carpets not only in In d ia but even in

America, where beautiful carpet pieces were exhibited

31in the Chicago World F a ir . This was the time when

according to the Census o f 1891, the total number o f

32carpet weavers in Srinagar stood at 800 to 900 . S ir

Walter Lawrence, who was Settlement Commissioner o f the

State at that time, writes in h is famous book "V a lley

o f Kashm ir",

Many o f the survivors o f the famine o f 1877-79

have now found occupation in the manufacture o f

carpets. Three E uropeans carry on business in

Srinagar as the manufacturers o f carpets. Their

work is o f good quality and apparently they can

with d if f ic u lt y keep pace with the orders which

they receive from In d ia and Europe. There i s now

no attempt to manufacture the costly though

supurb rugs in which the shorten v*>ol was used

and in Srinagar looms consume wool imported from

31. Ganju , M „ "T e x tile Weaving in Jammu and Kashmir" (1 9 4 5 ) , Op. C it ., P . 43 .

32. Ib id , P . 43.

27

In d ia or wpol lo ca lly produced. Srinagar has

a formidable rival in Amritsar where a large

colony o f Kashmiri weavers is settled and

considerable capital is employed in the

manufacture o f carpets.

PERIOD OF BOOM

An important feature to note is that the

carpet industry in Kashmir witnessed a period o f boom

during the years 1919 to 1929. Kashmir used to produce

high class carpets meant for the American markets*The

carpet industry was one o f the immense value to the

34inhabitants of the c ity o f Srind§ar during this period .

I t is d i f f ic u l t to say anything about the exact number

•theo f workers engaged in industry before 1921. But i t is

certain that the industry offered employment to a large

number o f men, ever since the Europeans began to take

35interest in this trade. Marrion Dc ught speaks o f 1901,

The wool used (in carpet industry) is grown

lo cally . The industry is one o f great benefits

33. Lawrence, W .R 0; "The Valley o f Kashmir", Op. C i t . ,P . 375.

34. Lawrence, W .R ., Op. C it . , P . 377.

35. Ib id vPP . 155-56.

28

to the habitants for not only are large numbers

o f men and boys employed on the actual vt>rk but

women and children prepare and wind w o o l." 36c

According to the Census Report o f 19 21 the

six woollen carpet factories of Srinagar gave employment

to 1, 342 men. Women were not d irectly employed in the

carpet factories but a fa ir ly good number o f them were

engaged in spinning o f wool, for the factories , in their

homes under the directions o f head weavers deputed by

37the companies.

Similarly, the Census Report of 1921, shows

the carpet industry as next in importance to sericulture .

Professor Barker o f the U niversity o f Leeds found the

handmade carpet industry o f Srinagar in 19 31, the single

38largest industry in the State .

In 19 3o, there were s ix b ig factories and 100

individual u n its . In factories alone 7 25 looms were at

work, employing 3 ,625 workers. Besides, the number o f

dyers, designers, talim w riters, factory sta ff and other

36. See, Khan, M. I . , "H istory o f S r in a g a r ". Aamir Pub licatio n s , Srinagar ( 1 9 7 8 ) (P . 66.

37. Bhan, R. K .,"R e p o r t on Carpet In d u s t r y ",P . 18.

38. Barker, "Report on Cottage T extile Industries Of Kashmir" Page 7 5.

29subsidiary workers engaged in spinning and twisting,

i f taken into account w ill show that four to fiv e thousand

39workers depended on this occupation. According to

D r . Bhan, i f the dependents o f these workers were to be

added, i t w ill increase the number four times. Thus

d irectly or in d irectly about 12 percent o f the

population o f Srinagar earned its livelihood from the

carpet industry at that time.

GREAT DEPRESSION OF 19 29

The carpet industry was adversely h it by the

Great Depression o f 19 29. Because o f financial c r is is ,

America raised high T a r r iff walls against the Indian

carpet imports and this nroduced a c r is is in the carpet

40industry o f Kashmir. The demand p a rticu la rly came to

a standstill and the labour was thrown out o f employment.

The Swadeshi movement in In d ia also affected the demand

42for carpet by the British people.

39. Bhan, R. KOJ "Report on Carpet Indus try^P. 18.

40. Ib id , P . 19.

41. Ganju, M.^ Op. c it e d .^ P . 132.

42. M alik , A. H . ; "The Evolution o f T extile industry win Hasnain," F .M . "Heritage o f Kashm ir". P . 178.

30

The impact o f Great Depression on the Carpet

industry o f Kashmir is depicted by the following table.

Table 1 .1

Year-wise Production and Employment industry of Kashmir (19 30-19 36 ).

in Carpet

Year No. o f loams Volume o f production (Sq . feet)

Value o fproduction(Rupees)

No. Of workers

19 30 825 8 /9 4, 000 26, 4 0 ,000 6, 69 0

19 31 100 1 ,2 0 ,0 0 0 3 ,0 0 ,0 0 0 1, 200

19 32 100 1, 2 0 ,000 3 ,0 0 ,0 0 0 1,800

19 33 25o 3, 0 0 ,0 0 0 7 ,5 0 ,0 0 0 1 ,800

19 34 250 3 ,0 0 ,0 0 0 7 /5 0 ,0 0 0 1 ,8 7 2

19 35 300 3, 6 0 ,000 1 0 ,8 0 ,0 0 0 —

19 36 315 3 ,7 8 ,0 0 0 11, 34 ,000 1 ,558

Source: Economic Survey o f Woollen Industry in Kashmir"by D r . R. K. Bhan, P . 2 3.

The above table makes striking revealations. I t

depicts that the carpet industry started declin ing at

a very fast rate following the depression o f 19 30. From

19 30 to 19 32 the decline was quite sharp but from 19 33

the period o f recovery started though at a slow speed.

As a result o f this phenomena there occured a corresponding

decrease in the number o f workers employed in this

A 11ama Iqbal L 'V a t y

I keses / i S h ' V I

Acs No . ft* W Lj !No,

31

industry . Thus w ithin a period o f 7 years the number

o f workers fe ll down to 1 ,558 from 6 ,6 9 o . S im ilarly

the number o f looms and volume and value o f production

was also affected adversely.

Thus the immediate effect o f the Wall Street

collapse was a c r isis in the industry . In the boom

period average standard quality was 120 to 17 0 knots

per square inch and during depression, much coarser

43stuff was put on the market. This situation was

however, remedied to some extent as a result o f Ottawa

Pact and the State subsidy on exports o f carpets.

Another redeeming factor was that Britain and other

European countries became interested in Kashmir carpets.

The industry got further boost by timely action o f the

State Government which granted a subsidy on the export

44o f carpets from 19 32 onwards.

PARTITION AND AFTERWARDS

The carpet industry o f Kashmir received a

set back due to partition o f the sub-continent in 19 47.

43. Bhan, R. K. "Report on Carp t Industry" P . 11.

44. Ganju, M. "T e x tile Industry in Jammu and Kashmir" P , 132.

32

A few skilled weavers from Srinagar went to Pakistan

45and established their own units there. Besides, the

British carpet manufacturers settled in the valley

were forced by the circumstances to dispose o f f their

factories and leave Kashmir. In 19 45, Mr. K. C . Hadow

the son of the late Mr. C . M. Hadow sold h is factory

to Messers 'The Kashmir Fine Art Dealers Ltd — a firm

46based in C alcutta . Thus Kashmir lost a pioneer in

the f ie ld o f carpet manufacturing. Messers M itchell

and C o . was also sold to an Amritsar based firm M /s

47East in d ia Carpet Company. The successors o f foreign

manufacturers could not run their factories on sound

b a s is . Consequently, the production and export o f

carpets was reduced.

I t seems that from 1929 up to 197 3, the carpet

industry o f Kashmir experienced a period o f stagnation

rather d ecline . This is evident from the fact that in

1929, there were only six large firms with 715 looms

and engaging 3 ,57 3 workers with an annual output o f

45 . IDS "Contribution o f Handicrafts and Handlooms to Indian Development" Product S er ie s : 2, (New D e lh i,1982) P . 1-11.

46. Based on personal enquiries .

47. Based on f ie ld investigation and discussions held

with various persons.

33

Rs. 18 lakhs, out o f which Rs. 6 lakhs went to workers.

According to the All In d ia Handicrafts Board, which

made a study o f the Kashmir H andicrafts in the year

1954, the onplo^ment in the Carpet industry in Kashmir

was only 800 and the value o f production was assessed

49at Rs. 20 lakhs. Iftus the number o f workers declined

from 3 ,57 3 to 800 between 1929 and 1953. The value o f

production remained somewhat same during th is period,

ind icating a decline in the volume o f production and

a r ise in the average unit p r ice .

The Government o f Jammu and Kashmir conducted

a comprehensive survey in the year 197 3 not only o f carpets,

but o f all other h and icrafts . According to this survey

the number o f looms in carpet industry was 900 ,

employment 3 /443 and the annual value o f production

50o f Rs. 9 2 .5 1 lakhs. A comparison of these figures

with the figures o f 19 29 and 1954 leads to the conclu­

sion that the development o f carpet industry in

Kashmir over a period o f 34 years is a story o f

48. Bhan, R. K., Op. c ite d ., P . 18.

49. Report o f the Development Review Committee, J&K Part 111, Development o f Handicrafts and Handlooms, (1976) P . 19.

50 . Report o f the Development Review Committee,Jammu and Kashmir 1976) Part i l l P . 19 .

.34

stagnation in terms o f increase in looms, yardages

o f production, employment and exports. Production has

remained more or less static . However, there has been

continuous escalation o f prices and the increase

in production values is more representative o f the

price escalation than o f any substantial growth in

51industry in terms o f looms etc.

However, one important development in carpet

industry after 1947 was a bigger involvement o f the

local manufacturers and exporters. Some capable and

enterprising local businessmen came forward and they

tried to revive the industry. In this connection mention

may be made o f M /s lndo-Kashmir Carpet Co.,. M /s Gulam

52Mohi-ud-Din and Sons and m/ s Modern Carpet etc. The

local manufacturers tried to give a new direction to

the carpet industry . British manufacturers used to

manufacture carpets only according to their own tastes.

Eut now the market was d iv e rs ifie d . Therefore, the

orig in al persian designs and the local designs were

51 . O p .C it . P . 19.

52 . Based on personal enquiries and d iscussions held with the concerned people.

introduced by the local m anufacturers/)However,

on the whole the industry started showing the signs

o f revival.

PRESEN T POSI TiON

The revival o f the carpet industry started

from 1970 onwards. Due to a number o f reasons, the

production, exports and employment share o f the

industry increased gradually. The following table

reveals thi s trend in respect 0 f carpet exports.

Table 1 .2

Value o f Carpet Exports from J&K( 197 0-71 to 1983-84)

Year Value o f Exports Annual Growth(Rs. in crores) Rate (%)

1970-71 0 .7 5 ... ............

1971 72 0 .89 -..... . + 19

197 2-7 3 1 .4 1 ... + 58

197 3-7 4 1 . 7 3 ......... -- +2 3

1974-75 2 .47 ---- + 43

197 5-7 6 2 .5 0 — -- -+ 1

197 6-77 2 . S O ..... ..---- +120

1977-78 8 . 49 + 120

1978-79 12. 10 + 43

1979-80 26 .9 6 +123

1980-81 2 6 .8 0 - 1

1981-82 24-25 - 10

198 2-8 3 23. 10 - 5

198 3-84 22. 20 - 4

Source: Compiled by the Scholar on thebasis o f data obtained from the Directorate o f H andicrafts , J&K Srinagar.

36

I t is evident from the above table that

the value o f exports has increased from a meagre

sum o f Rs. 0 .7 5 crores in 197 0-71 to Rs. 2 6 .8 0

crores in 1980-81, registering 36 fold increase in

the value o f exports over a period o f 10 years.

This phenomenoJa increase m the export

for Kashmir carpets was the result o f two main

factors v iz .

i ) Decrease o f supply from Iran

i i ) Increased market demand

However, the main reason responsible for

bring ing about this situation was that from the

early 1970 ‘ s the supply position o f the market

underwent a substantial change. The petroleum finan­

ced era o f modernisation set in motion by the

deposed 'Shah ' o f Iran brought about a d ist in ct

sh ift in the Iran ian economy. The state intervened

to discourage carpet weaving in the larger towns where

a large number o f children were being employed in the

carpet factories . Subsequently, ch ild labour was

banned. As a result, production in Iran , the

dominant force in the international market declined

dram atically . I r a n 's share o f the market declined

from 4 2 .6 percent in 19 63 to just 1 7 .1 percent

in 1 9 8 0 .53

The vacuum created by I r a n 's reduced production

compelled the foreign carpet inporters to locate new

sources o f supply, which would substitute Ir a n . Ihe

principal b en efic ia ries from Ir a n 1 s continuing abdication

o f it s pre-eminance in the international carpet market

have been Pakistan and In d ia . In d ia increased its share

o f international market slowly reaching 15 percent by

54value in 1980 from 9 .8 percent in 19 63. Consequently

the exports o f carpets from Kashmir increased at a faster

rate , because within In d ia , Kashmir was the only place

which could produce fin est quality oriental carpets,

comparable to Iranian carpets in terms o f designs, colour

combinations weaving texture and s ilk .

To catch up with the global demand for Kashmir

/carpets, m assive carpet weaving train ing programme was

launched by the various state and central Government

organisatio ns . The main objectives o f the programme were

to widen the production base and promote productivity

in the industry.-'As a result o f this training programme

53 . ID S , "Contribution o f Handicrafts and Handlooms to Ind ian Development" Product Review Paper: 2, ( 1982) P . 2-43.

54. ID S . Ib id . P . 2-15.

38

about 41000 weavers were trained by the end o f

55198 3-8 4.

Thus during the boom period, the industry expanded

tremendously. The number o f weavers increased from 3443

5 6in 1973 to 30 /000 in 19790 S im ilarly the value o f

production shot up from Rs. 0 .9 2 crores in 197 3-7 4 to

57Rs. 17*67 crores in 1979-80. An important development

during the boom period was that carpet industry was

geographically dispersed into the rural areas o f State ,

w hile as Previously i t was confined to the Srinagar c ity

and it s sub-urbs. Ihe production and export o f s ilk

carpets, for the fir s t time in the h isto ry o f Kashmir

carpets, increased s ig n ific a n tly during the boom period .

RECENT MARKET DEPRESSION

The boom period for the Kashmir carpets

continued up to 1980-81. However/ from 1980 onwards the\

industry started facing the market depression. The

table given above reveals that the value o f carpet

exports declined from the peak o f Rs. 2 6 .8 0 crores in

1980-81 to Rs. 2 2 .20 crores in 1983-84, reflectin g

1 7 .1 6 percent decrease in the total value o f exports.

55. inform ation obtained by the Scholar personally from the D irectorate o f H andicrafts , J&K Srinagar.

56. Ib id „

57 . I b id .

39

There has been greater d ecline m the average unit

value realization o f exports. For instance , the AUVR o f

s ilk carpet exports from J and K declined from Rs. 5, 419

per square metre in 1979-80 to Rs. 3010 per square

58metere. As a result o f the market depression, the

carpet industry o f Kashmir has been adversely a ffected .

According to a recent survey made by the AIHB (1982)

17 percent o f the total number of carpet looms were id le

59 > ’at the time o f survey.

Several reasons are advanced for the present

c r is is in the carpet industry of Kashmir, of these

following deserve special mention.

I ) Most o f the countries in the Western Europe

and America are experiencing economic recession and

this is affecting their buying capacity. Carpet being

a luxury item, its markets have slackened and as a

consequence imports are d eclin in g . The recession seems

to have le ft a substantial impact on the carpet industry,

58. O f f ic e records, Central S i l k Board, Srinagar Branch.

59. "Report on carpet Industry at Selected Areas"O ff ic e o f the Development Com m issioner(Handicrafts) New D elh i ( 1982) P . 23.

40

as can be seen in the decline in world demand from

2a peak o f 15 .2 m illion m worth jf- 1 .7 6 B illio n in

1980 to 1 4 .0 m illion m'2 worth sum $ 1 . 3o B illio n in

601982. Consequently the demand for Kashmir carpets

has also been affected by this global phenomena.

I I . Besides, the boom period saw a gradual

d ecline in the quality o f the Kashmir carpet in the

wake o f mass production. The deterioration in the

quality was m ainly the result o f the inadequate

training o f weavers under the Massive carpet Weaving

Training Scheme and the use o f in fe r io r raw m aterials

by the unscruplus manufacturers etc. Unfortunately

the deterioration in quality happened at a time when

good quality carpets were fetching a good price .

I I I . The competition from the other leading

carpet producing countries, l ik e Pakistan , China and

Turkey in t e n s ifie d . Pakistani manufacturers started

using superior quality wool, which they imported from

New Zealand, i t gives better sheen and look to the

6 2carpets. ‘ C hina entered into the carpet market in a

60. IT C , "Major Suppliers o f Hand-knotted Carpets" Volume I I I , international Trade Centre, (Gen eva:

1983) P . 3

61. IDS? "Contribution of Handicrafts and Handlooms

to Indian Development" P . 2-15.

62 . I b i d . 63

41

b ig way. Due to its vast labour resources, controlled

economy and excellent indigenous raw m aterials, China

has been successful in capturing a substantial portion

63o f the total market.

W ithin In d ia , Kashmir Woollen Carpets face growing

competition from the Mirzapur-Bhadhoi carpet b e lt . Although

the Mirzapur-Bhadhoi b elt produces low quality carpet

as compared to Kashmir, but due to a v a ila b ility o f cheap

labour and adequate supply o f raw m aterials at

comparatively lower prices , their cost o f production is

low. Besides, the manufacturers in that area are now

gradually improving their quality and they have also

started weaving o f pure s ilk and silk-wool carpets

o f very high knottage, which are comparable to Kashmir

64carpets.

As a result o f the above factors, the demand for

Kashmir carpets has recently slackened to some extent

and the industry is passing through a stage o f c r is is

at present. However, acc"0 rding to the prelim inary

data for the f ir s t three quarters o f 198 3, the downward

63. O p .c it .

64. M ishra, G .D . / 'A n Insid ers Indepth Eye-view o f In d ia ’s Carpet Trade", Carpet-«-World, volume VI

198 4, Varanasi P . 8 9 .

42

trend in the world import o f hand-knotted carpets

was halted in some o f the largest importing countries,

especially the Federal Republic o f Germany and the

United States o f America, which together represent some

655o percent o f the total world imports. I t is further

corroborated by the fact that the ensport o f s ilk

carpets from Kashmir during the la st 2-3 years have

shown again a s ign ifican t rise in terms o f total

66quantity and value. r\

From the foregoing paras, i t is quite clear

that carpet industry had a chequred h isto ry right

from the inception o f the craft to this time. Never­

theless, the fact remains that i t has now come o f age

and has become one o f the most important items o f our

exports. In this backdrop, i t w ill be interesting to

examine b r ie fly it s role in the economy o f the State .

Following pages have been devoted to this study.

ROLE OF CARPET INDUSTRY IN J AND K ECONOMY

Ihe handicrafts sector plays a s ig n ifica n t

role in the economy o f J&K State which is b asically

65. ITC, "M ajor Suppliers o f hand-knotted Carpets" Volume I I I (198 3) P . 3.

66 . See, 3 U K . In d ia S ta tist ic a l Biennial 198 4,"Central S ilk Board, B a n d o r e P .7 2 .

43agriculture- oriented. Population in the rural areas

constitutes 81 percent o f the S t a t e 's total population

and 9o percent o f i t derive it s liveliho od from

67agriculture . Thus agriculture continues to be the

mainstay o f the people, the modern in d u stries , especially

the large scale ones have not been able to play any

s ig n ifica n t role in changing the basic character o f

the S t a t e 's economy.

Next only to agriculture, which too suffers

from many inherent drawbacks, Comes handicrafts and

tourism sector. Handicrafts sector has the potential

and promise to give a new character to the S ta te 's

economy, especially when the p o s s ib il it ie s o f large

scale industrial units i s almost remote. The

contribution o f the handicrafts sector, in terms o f

employment generation, production and foreign exchange

earnings is quite s ig n ifica n t . This is evident from

the fact that^d&ring the year 1982-8 3, the total

value o f production in the Handicrafts sector o f J & K

State was estimated to be o f the order o f Rs. 8 1 .3 7

6Rcrores. ^he export value o f handicrafts itesns

amounted to Rs. 37 crores, during the same period.

This has enabled In d ia to earn much needed foreign

67. ^

68. O ff ic e records, D irectorate o f Handicrafts J&K Srinagar.

44

exchange. S im ilarly the handicrafts sector provided

employment to 1 .6 5 lakh persons during the year 1982-83.

Ihe handicrafts and cottage industries play

an important role in the economic upliftm ent o f the

rural m asses. These industries provide suitable

supplementary source o f income to the farmers and

agricultural workers. Thus, these can help in checking

the m igration o f surplus labour force from rural to the

urban areas, by providing gainful employment to

them, at their own places.

Apart from it s contribution towards employment

and foreign exchange earnings, the handicrafts sector

does help in the preservation o f traditional s k ills

71and cultural heritage of the country.

THE PLACE OF CARPET INDUSTRY

In the broad sector o f Kashmir handicrafts ,

carpet manufacturing assumes a place o f p r id e . I t is

not only one o f the m ajor contributors to this

69. O p .C it .

7 0 . O p .C it .

7 1 . I ICO, "Carpet Weaving in Jammu and Kashmir'" In du stria l and Technical Consultancy Organisation ( J&K) Jammu (1979) P . l .

69

45

sector but also has won the wide name and fame

throughout the world since 15th century A .D . The

importance o f this industry l ie s in the fact that

i t is not only a h ig h ly labour-intensive industry,

but also contributes substantially to the foreign

exchange earnings o f the nation , i t would not be an

exaggeration to say that the carpet industry dominates

our handicrafts sector more than in one way, as would

be clear from the subsequent d iscussion .

HANDICRAFTS EXPORTS: SHARE QF CARPETS

The contribution o f hand-knotted carpets, as

a s in g le item o f handicraft exports is indeed s igni­

fica n t . Over the years, handmade carpets and rugs etc.

have consistently provided 45-50 percent o f In d ia ’s

foreign exchange earnings from handicrafts (excluding

72Gems and Jew ellery ). The contribution o f the carpet

industry to the export o f handicrafts is quite substaru

t ial at the State level as is revealed by table

No. 1 .3 .

7 2 . Kathuria, S. "In d ia n Handicraft Exports: Constraints and Prospects". Indian Council o f Research on International Economic Relations (iCRiER'i

New D e lh i , 1985, P . 3 .1 .

46

Export o f Handicrafts from J&K and the share o f carpets therein (197 4-198 4)

Table 1.3

Year Handicraft Export (Rs. in crores)

Carpet Export (Rs. in

Lcro r e s )

Share o f carpet in Handicrafts

197 4-75 7 .5 0 1 .0 6 1 4 .1 3

1975-7 6 10 .50 2 .5 0 2 3 .PI

1976-77 14 .50 5 .5 0 37 .92

1977-78 18 .25 8 . 49 4 6 .52

1978-79 19 .88 12 .10 6 0 .5 6

1979-80 37.87 2 6 .9 6 7 1 .1 9

1980-81 39 .9 2 2 6 .8 0 67 .13

1981-8 2 36 .20 24 .75 66 .981982-8 3 3 3 .00 23 .10 7 0 . 00

1983-84 3 7 .00 22. 20 6 0 .0 0

Sources Compiled by the scholar on the basis o finformation obtained from the D irectorate o f Handicrafts, Srinagar.

From the above tab le it becomes clear that the

share o f carpet exports in the total handicraft exports

from the State o f J & K has increased remarkably during

the last decade. W hile it was only 1 4 .1 3 percent in

197 4-7 5, it has reache3 60 percent in 198 3-8 4. This

amply demonstrates that the rate o f growth in case

o f carpet extorts is much higher than the other

handicrafts exported from the State .

KASHMIR* S SHARE IN IN D IA 1S CARPET EXPORTS

Sim ilarly the carpet exports from J&K occupy

an important place in the overall carpet exports from

In d ia 0 The figures in the table given below ind icate

that the share o f Kashm ir's carpet exports in the total

carpet exports from In d ia has been gradually increasing .

Table 1 .4

Value o f I n d i a 's Carpet Exports and the share o f J&K Bherein (1971 - 1981)

Year I n d i a 's Exports Kashm ir's (Rs. in crores) Exports

(Rs. in crores)

Share o f Kashmir in In d ia(%)

1971-7 2 13 .69 0 .8 9 6. 401972-7 3 2 1 .4 4 1 .4 1 6 .57

197 3-7 4 26. 42 1 .7 3 6 .5 4

197 4-75 36 .05 2. 47 6 .8 5

1975-7 6 41 .13 2 .5 0 6 .0 8

197 6-77 6 1 .45 5 .5 0 8 .9 5

1977-78 7 2 .8 7 - 8 .4 9 11 .65

1978-79 8 4 .0 0 12 .10 14 .45

1979-90 104 .00 2 6 .96 25 .92

1980-81 142 .31 26 .80 I P .83

Source: Compiled by the scholar on the basis o fdata obtained from : 1. Carpet Export Promotion Council o f In d ia , New D e lh i , i i ) D irectorate o f Handicrafts, J&K Srinagar.

The above table reveals that the share o f

Jammu and Kashmir in the total value o f carpet exports

from In d ia has risen from 6 .4 0 percent in 1971-7 2 to

2 5 .9 2 percent in 1979-80. Though the yearwise increase

is marginal yet the fact remains that the Kaslmir

carpets have succeeded in bagging a good share out o f

48

the national exports. However, in 1980-81 i t was

reduced to 18 .8 3 percent..

Nevertheless, i t is heartening to note that the

share o f Kashmir in the export o f superior quality s ilk

and woollen hand-knotted carpets from In d ia is quite

substantial. In fact, Kashmir is the on ly place in In d ia ,73

which exports superior quality s ilk carpets.

e m p l o y m e n t g e n e r a t io n

Carpet industry is a re lativ ely low capital

intensive industry, even by the standards o f capital

investment needs o f many other small scale industries .

At a deeper level, the 50-60 percent labour content

contributes to employment and exerts an upward pressure

on wages, thus helping in the development o f economically

74backward areas o f the country. International Trade Centre

(iTC )has also recognised the po sitive impact o f the

7 3. Based on personal investigations and the discussions held with the leading authorities in the f ie ld l ik e Mr. Gyan Prakash , Additional Development Commi­ssioner (Handicrafts) M in istry o f Commerce,Govt, o f In d ia , New D e lh i .

7 4c ID S , “Contribution o f Handicrafts and Handloom to Ind ian Development" Op. c it . P . 1-13.

40

carpet industry on the rural areas o f supplying countries

in the following words:

"The development o f production and exports

o f hand-knotted carpets has had' a p o sitiv e

a ffect on the rural development in the producing

4 . • U 7 5c o u n tn es0

I t is important to note that the output and

employment co- efficients are high , comparing very

favourably with the organised sector. Employment is

maximized with a minimum o f capital and a minimum o f

another scarce resource, energy,, The growth o f the

carpet industry is thus h ig hly b en efic ia l for the

economy.

At the all In d ia level, the employment is

estimated to have risen from 3o, 000, to roughly

2 ,5 0 ,0 0 0 , between the period 1960-61 to 1981-82,

7 6in d icatin g about 8 times increase. S im ilarly the

number o f persons employed in the industry was about

5 0 ,0 0 0 during the year 198 3-8 4 in the J&K S ta te .^ 7

This is an im pressive number compared to the earlier

7 5 . ITC , "M ajor Markets for Hand-knotted carpet"Volume I (1981) International Trade Centre,

Genva, P . 3.

7 6 . "P o ten tia l o f Indian Carpets in the World" Carpet-e-World, Volume I I I (1981 Varanasi) P . 21.'

77. O f f ic e recrods, D irectorate o f Handicrafts , Jammu

and Kashmir Government, Srinag^r0

50

estimate made in 197 3, When the total number o f persons

7 P.onployed in the industry was only 3, 443. c Thus there

has been 14 times increase in the number o f workers

during the la st decade. Table given below demonstrates

the increasing trend o f the employment in the carpet

industry vis-a-vis its share in the overall employment

in the handicrafts sector o f the State .

Table 1 .5

Yearwise Employment in Handicrafts and Carpets in J&K State (197 4-1984)

Year Employment in Handicrafts

(Persons in lakhs)

Employment in Carpets

(Persons in lakhs)

Share o f Carpets in

Handicrafts

%

197 4-7 5 0 .8 0 0 .0 4 51975-76 0 .8 2 0 .0 5 71976-7* 0 .87 0 .0 6 71977-78 0 .9 7 0. 10 101978-79 1. 15 0. 31 271979-80 1 .3 4 0. 4-4 331980-81 1. 44 0 .47 331981-82 1 .5 1 0 .4 9 321982-8 3 1 .6 5 0 .5 6 34198 3-8 4 1 .7 4 0 .5 0 29

Source: Compiled by the scholar on the basis o f dataobtained from the Directorate o f Handicrafts J&K, Srinagar.

7 8 . Survey Report H andicrafts : 1973, "D irectorate o f H andicrafts J&K, Srinagar. P .

51

The above table reveals that share o f carpets

was 29 percent in 1983-84 , as against only 5 percent

in 197 4-75. Thus the rate o f growth on the employment

generation side is much higher in case o f carpet

industry as compared to other hand icrafts . Therefore,

i t can safely be concluded that the carpet industry

o ffe rs very good prospects o f development as a tiny

sector industry in the rural areas o f Jammu and Kashmir

State . Being a labour intensive industry i t can absorb a

large number o f rural artisans , by providing them gainful

employment at their own places,, The process o f d iv e rs i­

ficatio n and d iffu sio n o f the carpet industry in the

household sector o f the rural areas o f the State has

already begun, with the launching o f the Massive

Carpet Weaving Training Programme through various

Government agencies.

Thus on the State Plane Carpet industry has assumed

a great and undoubted importance in the context o f

our economy, because o f the following:

i ) I t supports a large number o f rural

artisans by providing them gainful and

regular employment,

i i ) has considerable export potential and

can therefore contribute s ig n ific a n tly

to the country 's foreign exchange earnings,

52i i i ) is a re lativ ely low capital intensive

industry by the standards o f the

capital investment needs o f other small

scale units , and

iv) is atn e ffective instrument for promoting

the growth and development o f economically

backward regions.*

In view o f what has been stated above,

i t would now be interesting to analyse the production

system o f this industry in d eta il , with a view to assess

its loopholes and suggest measures for correcting o f

the same. The chapter that follows is devoted to

that d iscussio n .

* * * * ** * *

*