Transporters and chemical suppliers associated with the handmade carpet industry in Uttar Pradesh’s Bhadohi are in a spot over the tariff impasse with the US.
Sriprakash Mishra, president of the Bhadohi-Mirzapur Transporters’ Association, said over 20 trucks loaded with carpets bound for the US used to leave Bhadohi every day for the Mumbai port.
“More than 100 trucks were on their way to the Mumbai port when the Donald Trump administration slapped a steep 50 per cent tariff on Indian imports. Those trucks are stuck there, and we don’t have any new orders for transportation. Bhadohi’s carpet transportation industry is worth ₹100 crore. But it has been hung out to dry,” Mishra rued.
Rakesh Gupta, a local transporter, said their earlier efforts to persuade the carpet manufacturers to make advance payments had not been fruitful.
“Money is involved phase-wise in the cycle of carpet production. It takes three to six months to roll out a handmade carpet of export quality after passing through several stages such as the procurement of materials, weaving, washing, colouring and trimming. The manufacturers were confident that their business would continue to grow because they had specialisation in handcrafted carpets. But the US didn’t even think twice before punishing India for importing oil from Russia,” he said.
Gupta said they were myopic and didn’t explore products other than carpets for transportation.
“Now we are looking for other avenues to stay in business, but it will take time to find one. It will be difficult for us to return to carpet transportation if we shift to another sector,” he added.
Gupta urged the Centre to “proactively” look into the issue and come up with a solution as the prolonged tariff standoff with the US would irreparably damage carpet and associated industries.
Bhadohi produces over ₹17,000 crore of handmade carpets annually. Around 98 per cent of the produce is exported, out of which 60 per cent goes to the US.
Tarun Bhatia, who supplies rubber latex to the carpet factories, said he had not received any orders in the last few weeks.
“I supply rubber latex that is used to line the carpet’s underside. There are several dozen latex suppliers like me, and they all are sitting idle, waiting for a resolution of the deadlock,” he said. “There are many trades associated with carpet manufacturing. The wool suppliers also haven’t had any orders ever since the US imposed a 50 per cent tariff. If there is no demand for latex and wool, it means there is no production of handmade carpet.”
Bhatia sees little hope in the impasse being resolved through negotiations, as the Centre has already urged manufacturers and consumers to buy swadeshi (India-made) products.
“These carpets are mostly used in cold countries. Americans use these carpets and replace them in three years because they have good purchasing power compared with other rich countries of Europe,” Bhatia said, adding that he was thinking of switching his business.