Home / ECONOMY / How tensions with Bangladesh are roiling India’s sari business | Business and Economy

How tensions with Bangladesh are roiling India’s sari business | Business and Economy

How tensions with Bangladesh are roiling India’s sari business | Business and Economy

In recent months, the sari industry in India has experienced significant upheaval, largely due to escalating tensions with neighboring Bangladesh. The ongoing diplomatic strain has not only affected political relations but has also deeply impacted the livelihoods of weavers and traders in India’s renowned sari markets, particularly in Varanasi.

Historical Context

Varanasi, often hailed as the spiritual capital of India, has been a vital hub for weaving exquisite Banarasi saris—a traditional Indian garment known for its lavish silk, intricate gold and silver thread work, and cultural significance. Mohammed Ahmad Ansari, a seasoned weaver from Varanasi, highlights that these saris can take up to six months to craft and sell for high prices, sometimes reaching 100,000 rupees (approximately $1,130). However, recent political developments have brought this once-thriving industry to its knees.

The Catalyst of Tensions

Diplomatic relations between India and Bangladesh have cooled since August 2022 when former Prime Minister Sheikh Hasina faced an uprising, prompting her to flee to New Delhi. The fallout has led to heightened tensions as Bangladesh accuses India of meddling in its political affairs. In retaliation, investigations into attacks on Hindu communities in Bangladesh—often seen as supporters of Hasina—have exacerbated the situation.

Economic Responses and Consequences

In April 2023, Bangladesh imposed restrictions on imports from India, including essential materials like yarn and rice. India retaliated in May by banning imports of certain products from Bangladesh, which necessitated using more expensive sea routes for trade. Although saris from Bangladesh can still flow into India, the costs associated with the maritime transport have led to a drastic decline in the business. Traders like Pawan Yadav from Varanasi report that sales have plummeted by over 50%, causing heavy financial losses and stalling operations.

As a result of these political developments, Varanasi weavers and traders face crippling setbacks. The sari industry, already beleaguered by policies like demonetization and increased competition from cheaper, machine-woven alternatives from Gujarat’s Surat, is under immense pressure. Many artisans are exiting the trade, and the number of weavers has halved to approximately 200,000.

The Broader Picture in the Sari Sector

Despite the challenges in Varanasi, the sari industry remains a substantial segment of the Indian economy. Valued at around 80,000 crore rupees (approximately $9.01 billion), this sector employs over 3.5 million people, making it one of the country’s largest employment creators. Traders and weavers in Varanasi are hopeful that Prime Minister Modi will intervene to restore trade ties with Bangladesh, as many local artisans have historically supported his governance.

Vowing to promote domestic handloom products, Modi’s government introduced National Handloom Day in 2015. However, many in the industry feel disillusioned by the lack of significant changes or support to rejuvenate their livelihoods.

A Tale of Two Regions: West Bengal’s Sari Industry

Contrastingly, the ban on saris from Bangladesh has somewhat fortified the sari industry in West Bengal. Traders in areas like Shantipur and Nadia have seized the opportunity to reclaim their market share, which had been eroding due to the popularity of Bangladeshi saris. Tarak Nath Das, a cotton sari trader in Bengal, shared that his business saw a 25% increase in sales during the recent festival season, as local customers began embracing their homegrown products once again.

Shantipur, recognized as a hub for handloom weaving, has benefited from a surge in demand. Traders like Sanjay Karmakar express optimism that Indian weavers can capitalize on this moment, particularly as younger consumers begin to prioritize quality and authenticity over flashy packaging often associated with imported saris.

The Road Ahead for Weavers and Traders

The current situation raises significant questions about the future sustainability of traditional weaving practices in India. While West Bengal traders celebrate a return to competitiveness, Varanasi weavers like Ansari worry about the long-term ramifications of a shrinking market. As younger generations opt for modern attire over traditional garments, the art of sari weaving faces an existential threat.

Ramesh Menon, founder of Save the Loom, emphasizes the urgent need to reposition Indian handloom products as luxurious rather than just items of poverty. For the sari industry to thrive, artisans must find viable pathways to reinvigorate interest in traditional weaves.

Conclusion

With tensions between India and Bangladesh casting a long shadow over the sari industry, the road ahead remains fraught with challenges. While West Bengal traders may find new opportunities, the fate of Varanasi’s weavers hangs in the balance. The need for government intervention, innovative marketing, and community support has never been more critical. As the fabric of tradition intertwines with contemporary economics, the preservation of India’s rich handloom heritage will depend on the resilience of its artisans and the adaptability of its markets.

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