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TOPIC : End to Pak exporters' monopoly
Posted on 02 July 2007 at 12:01:00

Indian carpet exporters have acquired the services of Afghan weavers to make inroads into the innovative kazak designed monopolised by Pakistan with the assistance of carpet weavers from among the Afghan refugees. India has given employment to hundreds of Afghan carpet weavers in India where they are making the same kazak designed by them.

India is offering the same carpet varieties for $70-80 per square meter that Pakistani exporters sell at $110 per square meter. Traditionally wages in the Indian carpet manufacturing sector are 30-40 percent lower than Pakistan. Pakistani carpet weavers too have accepted this challenge of low-cost production by introducing intricate and innovative designs in order to fetch better rates.

Carpet varieties that Pakistan produced in partnership with Afghan weavers was very intricate to copy; as the weaving dyeing and finishing techniques were quite different from traditional carpets manufactured in India and Pakistan. Pakistani exporters expected this edge to last longer but the Indians look to challenge Pakistan in this respect, as the installation of a friendly government in Afghanistan coupled with the return of some Afghan weavers to their native country could provide them that opportunity. Pakistani carpet manufacturers entered the US carpet market in the late 90s with a bang by introducing for the first time the vegetable dyed Kazak designs manufactured with the help of Afghan weavers who are masters of this art.

Innovation in new designs has so far saved carpet exports from complete collapse. Before the introduction of these new varieties of carpet exports from Pakistan were $287 million in 1992-93 and gradually declined in the next five years to $134 million.

The carpet exports from Pakistan started reviving and hit record exports of $290 million three years back. The exports again declined to $254 million last year and further decline to around $220 million as the Indian competition in Afghan variety intensified.

Mr. Divya Aggarwal

Money Management Consultants Ltd

Senior Copy Editor, Money Management Consultants Ltd
New Delhi, India

Free Member, Joined :05/11/2007
No of Topics Posted : 113
Reply/Comments : 14

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