Livelihood Crisis Looms Over Lakhs of Weavers of Bhadohi Due to Closure of Strait of Hormuz
Bhadohi: The closure of the Strait of Hormuz shipping route—triggered by the ongoing conflict in West Asia—has created a severe livelihood crisis for lakhs of weavers of Bhadohi associated with handicraft-based industries, such as carpet weaving.
Transportation costs have skyrocketed
Aslam Mehboob, Vice Chairman of the Carpet Export Promotion Council (CEPC), stated here on Friday that the ongoing conflict involving the US, Israel, and Iran is now impacting the global economy like a cancerous growth. The closure of the Strait of Hormuz route has caused transportation costs to skyrocket manifold, resulting in an adverse impact on the production costs of carpets.
Furthermore, due to the blocked shipping lanes, the availability of wool—a key raw material used in carpet manufacturing—from countries like New Zealand can no longer be guaranteed.
America is the largest importer of Indian carpets
He said that America is the largest importer of Indian carpets, historically accounting for 50 to 60 percent of the total volume of Indian carpet exports. Media reports are currently highlighting the looming threat of a severe economic recession in the US due to the war; consequently, consumers there are now prioritizing the purchase of daily household necessities over luxury items like carpets.
30 to 40 percent of the exported carpets have been stranded en route
This shift is having a direct and detrimental effect on carpet exports. Amidst these various challenges, 30 to 40 percent of the exported carpets have either been stranded en route or remain stockpiled in warehouses at various ports. Similarly, exports to other destinations—including Switzerland, the UK, France, Germany, and various Gulf nations—have also been significantly impacted.