SRINAGAR: The Kashmir Chamber of Commerce & Industry (KCCI) delegation led by its President Javid Ahmad Tenga held a meeting with Giriraj Singh, Minister of Textiles, Government of India, on Monday, July 29, 2024, at Udyog Bhawan, New Delhi. The delegation also included Zubair Mahajan, Treasurer, and Shaukat Khan, Member of the Executive Committee.
According to a press release issued here, the KCCI sought the Minister’s intervention for the promotion of handicraft and artisan products and the participation in Reverse Buyer Seller Meet (RBSM) events organized by various Export Promotion Councils in India and abroad. The importance of the handicraft sector, involving the livelihood of tens of thousands of artisans and weavers, was presented to him. The following matters deliberated upon in detail are:
ACCREDITATION OF EXPORT PASHMINA DNA TESTING LAB WITH NABL/WILDLIFE DEPARTMENT
The long-pending inauguration of the Pre-Export Pashmina DNA Testing Lab at SKUAST Srinagar was discussed. The KCCI demanded that the lab be accredited with NABL and the Wildlife Department at Srinagar/Delhi, where over 95% of Pashmina is manufactured. Additionally, certification done at the lab should be made mandatory for customs to accept for the clearance of export consignments to avoid seizure and delays in exports. The Minister’s attention was drawn to the delivery schedule of export shipments and any delays, which not only cause loss to the exporter but also result in the cancellation of future orders, besides earning a bad name in the importing country. This sets off a chain reaction, subjecting exporters/manufacturers to loss, while the artisan/weaver community faces joblessness.
ROSCTL AND CHANGE OF HSN CODE FOR PASHMINA VALUED SHAWLS
The KCCI pleaded that Jammu & Kashmir, being famous for its handicrafts, particularly hand-embroidered woolen and Pashmina shawls, provides jobs to tens of thousands of people directly or indirectly. The Central Government had initially provided assistance to exporters, including those of shawls. However, the Central Government stopped MEIS (Merchandise Exports from India Scheme) for the export of woolen and Pashmina shawls effective March 7, 2019, and replaced it with ROSCTL (Reference of State Central Taxes Levies) on Woolen and Pashmina Shawls falling under ITCHS-CODE NO: 62142010. However, a cap of Rs. 438/- was placed on such exports. Ironically, by putting a cap, Pashmina and other value-added shawls costing thousands of rupees receive the same benefit as those costing Rs. 438/-. Woolen shawls made in Jammu & Kashmir cost above Rs. 3500/- and a minimum of Rs. 7000/- for a Pashmina shawl. Currently, such shawls are also receiving the same benefit as shawls costing Rs. 438/-. The KCCI strongly pleaded that this anomaly in the Foreign Trade Policy 2023-28 be removed, for which it has raised its voice at every available forum.
The KCCI suggested that a separate HSN CODE be provided to cover Value Added & Pashmina Shawls so that adequate benefits are available to the exporters whose products cost thousands and, in some cases, lakhs of rupees, produced by artisans over months and years.
DECLARATION OF HANDICRAFT CLUSTERS IN DISTRICTS OF KASHMIR
The Government of India has declared Kanihama village of Budgam District as a Handloom Village in view of the dense production of Kani Shawls/Pashmina and other handicraft items in this area. There are a sufficient number of artisans in the area associated with this craft. The central government’s decision has significantly impacted this village and has become an inspiration for other areas in the region.
Similarly, the North belt of the Kashmir region, being dense in the production of renowned handmade silk carpets—a very sophisticated and valuable product famous all over the world—plays a very important role in the Indian carpet industry and its exports. The densely weaver-inhabited area may be declared a carpet village/cluster. Similarly, districts with substantial concentrations of handicraft products/activities should be identified and established as Handicraft Clusters.
MARKET STUDY TO MIDDLE EAST/USA
With a view to promoting exports of handicrafts and other sectors, the Kashmir Chamber of Commerce & Industry proposes to conduct Market Study Tours to European/Middle Eastern countries/USA and other countries.
The Textile Minister appreciated the concern expressed by KCCI about the handicrafts and the weaver/artisan community. He gave a positive response to the suggestions/demands raised by the President of KCCI and assured that the issues would be resolved soon. The President of KCCI expressed his gratitude to the Minister for his time and understanding and invited him to visit Kashmir, where KCCI will organize a handicrafts stakeholders’ event. The Minister accepted the KCCI President’s invitation.