Shops, promoting Banarasi silk saris, closed in Varanasi, Uttar Pradesh, in the wake of the lockdown | Photo: Suraj Singh Bisht | ThePrint
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Varanasi: Prime Minister Narendra Modi’s parliamentary constituency, Varanasi in Uttar Pradesh, is changing into a microcosm of what Covid-19 might do to the financial system, with the well-known Banarasi silk and textile industry in the metropolis gazing an unsure future.
Textile merchants say first it was the demonetisation, after which items and providers tax (GST) that hit the industry arduous. Then when the industry was slowly recovering, China stopped the export of silk yarn final December as a consequence of the coronavirus outbreak and when it resumed in March, India imposed the lockdown.
The largest concern of the merchants now could be how Covid-19 would change the method folks have a good time festivals and weddings.
Varanasi’s textile industry depends closely on the wedding ceremony season however many potential shoppers have both postponed the weddings or made them a modest affair, affecting the gross sales.
Traders say that even when the lockdown is lifted after 17 May, it’ll take them not less than three months to a yr to resume regular functioning.
What has additionally hit them the most is the indisputable fact that a number of hotspots which were fully sealed in Varanasi are these areas which have a sizeable variety of weavers.
“A lot of cases related to the Tablighi Jamaat that were reported in Varanasi were converted into hotspots, including areas such as Lota, Madanpura, Bajaradiha. This was in the first phase and most of the weavers used to live there,” mentioned a dealer, who didn’t wish to be named.
Also learn: Indian financial system faces greater danger from coronavirus as a result of it’s casual
Need to popularise Banarasi silk as soon as again
The merchants have final month sought a six-month moratorium on month-to-month installment aside from waiver of financial institution curiosity and financial institution expenses for six months. They have additionally requested for fastened expenses on electrical energy payments to be relaxed by the Uttar Pradesh authorities.
“The industry has a turnover of Rs 6,000 crore every year and this year, one quarter is almost over and we have not achieved anything,” mentioned Vaibhav Kapoor, vice-president of the Varanasi’s Silk Trade Association.
“Even as other sectors will slowly start becoming functional, for us things will not change much as marriage season is already over. At the same time, after Covid-19, the way people will celebrate marriages and other social functions will change drastically, so the demand for saris is unlikely to pick up soon. Unless people start celebrating in a big way, the industry will find it hard to function,” he added.
Kapoor additional mentioned there’s a must popularise Banarasi silk as soon as again.
“The authorities wants to assist us with this. We don’t need funds from the authorities, however we wish assist on this,” Kapoor mentioned.
‘Govt needs to take drastic steps to save us’
The textile industry has final month sought assist from Prime Minister Narendra Modi.
In a letter to Modi on 13 April, the Uttar Pradesh Vyapari Kalyan Board wrote: “Textile industry being the second highest job-creator after agriculture, being majorly labour-intensive and a substantial contributor to the nationwide GDP. Textile industry is a secondary important industry and the livelihood of over 11 crore persons are straight and not directly depending on the textile sector.
“Major stakeholders of the Varanasi Textile industry are small, micro and medium enterprises, which are bracing for the fallout from this unprecedented event lockdown due to Covid-19,” wrote Harshpal Kapoor, a board member, in the letter.
Trader Hari Prasad Agrawal mentioned he has been paying salaries to his staff for months now, regardless of being in a “bad condition” for the previous few months.
Detailing the issues confronted by the textile industry, Agrawal mentioned: “The downside began in December (final yr) when China stopped the silk yarn export and when China resumed it in March, lockdown was imposed in India.
“It has been a double whammy for us,” he added.
The dupion silk, dropped at India from China’s Sichuan province, is the uncooked yarn that weavers in Varanasi use to make the silk sari.
Agrawal additional mentioned the export of silk was affected to a nice extent and the native weavers suffered as a consequence of the GST. “First it was demonetisation, then GST and when things were slowly recovering, we were hit by Covid-19. The government needs to take drastic steps to save this industry,” he added.
Also learn: Why coronavirus is punishing the financial system greater than Spanish Flu
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