Varanasi, Aug 30: The world-famous Banarasi saree and silk industry is facing a severe impact due to tariffs imposed by the US. Following the imposition of tariffs, large orders from the US are being cancelled, and foreign traders have started returning shipments, say traders.
According to the Varanasi Textile Industry Association, if this situation persists, the city could suffer losses of up to Rs 300 crore annually. This crisis has put the livelihoods of thousands of artisans at risk, and the industry is now staring at large-scale unemployment.
Rajan Bahl, vice president of Banarasi Textile Industry Association, stated: “Exports of Banarasi sarees will decline by 15 to 20 per cent due to these tariffs. Handloom products will be the most affected. Though the current losses may appear small, the future impact will be severe.
Every year, exports worth Rs 200 to Rs 300 crore were sent to the US, which is now under threat. Orders are being cancelled, and no new orders are coming in. I firmly believe this is not a minor loss; it is a major blow to Banaras and its industry. Orders are being cancelled, and we cannot expect fresh orders going forward.”
He further added that the number of handlooms is already decreasing, and these tariffs will only accelerate the decline. He appealed to the government for immediate intervention to save the industry.
Local saree trader Sarvesh Kumar Srivastava said: “The tariffs have seriously impacted our business. Recently, goods worth Rs 10 lakh were returned. The weavers’ livelihoods are in jeopardy. Finished products have been put on hold, and payments are stuck. I employ 20 workers, and holding Rs 20 lakh worth of goods has caused significant losses.”
He explained that traders, already facing economic challenges, are now under increased pressure due to the tariffs. Srivastava demanded that the government exempt handloom and handicraft sectors from GST.
“Removing the 5 per cent GST on handloom and handicrafts would provide relief to the industry. It would boost demand in the domestic market and attract the middle class back to Banarasi sarees,” he said.
He added: “I believe GST exemption could bring a revival in the industry, providing support to weavers and traders alike. The tariff-related crisis has not only caused economic losses but also endangered the livelihoods of thousands of artisans and their families. The government must intervene immediately. Without prompt action, this industry could slip into deeper crisis.”
IANS