KCCI flags export decline, seeks global push for Kashmiri handicrafts

Srinagar, Sep 9: The Kashmir Chamber of Commerce & Industry (KCCI) on Tuesday urged the Union Ministry of Textiles to take urgent steps for reviving Kashmir’s handicrafts sector, citing falling exports, cheap imitations, and policy gaps that threaten the survival of artisan livelihoods.

During an interaction with Union Textiles Secretary Neelam Shami Rao at the Government Arts Emporium, Srinagar, KCCI President Javid Ahmad Tenga said Kashmir’s 600-year-old craft legacy remains the mainstay for over 3.8 lakh artisans, but requires strong institutional and market support to sustain.

Welcoming the GST Council’s decision to reduce GST on handicrafts from 12% to 5%, he sought deeper interventions, including a dedicated warehousing facility at Dubai Mart, greater participation of Kashmiri exporters in national and international fairs, and the reintroduction of a 3% interest subvention on export finance for small businesses.

Tenga stressed the need for special allocation of stalls for KCCI members at international trade events, including Reverse Buyer-Seller Meets, and proposed holding a Buyer-Seller Meet in Srinagar to connect artisans directly with global markets and revive tourism hit after the recent Pahalgam incident.

On the issue of policy anomalies, he highlighted distortions under the ROSCTL scheme, where handmade Pashmina and woollen shawls—ranging from Rs 7,000 to over Rs 1 lakh—are capped at a benefit of Rs 438 per piece. He demanded removal of capping and restoration of FOB-based incentives under the earlier MEIS scheme. The Secretary asked KCCI to submit a detailed representation for consideration.

Tenga also called for expanding cluster-based development by replicating the Kanihama Handloom Village model in other artisan-dense regions, particularly North Kashmir’s carpet-making hubs, and urged recognition of such areas as official “Handicraft Clusters.”

Emphasising market expansion, he said Europe and the Middle East remain vital destinations for Kashmiri handicrafts and pressed for structured market study tours and trade delegations. The Secretary encouraged KCCI to identify priority countries for such initiatives.

The interaction concluded with assurance from the Ministry that the proposals would be examined for incorporation into future policy planning.