'The silk industry is the worst hit due to the appreciation of rupee and now, the exports have registered a fall of more than 75 per cent in just one year', informed Rajat of Synergy Fabrikraft, a Varanasi-based company.
'We were very happy as countries like Spain, Australia and United Arab Emirates were buying our products but with the appreciation of rupee the things have changed', said Rajat while talking to Business Standard. According to him the silk products from Pakistan, Bangladesh, and China are in demand these days and Indian items are loosing their market.
'There is a simple reason behind this as the currency of other countries such as China and Bangladesh has not devaluated and importers are getting profit', said Ajai Prakash, assistant professor in the department of Business Administration, Lucknow University.
According to the owner of the Synergy Fabrikraft, the export orders for Varanasi Fabric was to the tune of Rs 200 crore which has now come down to Rs 50 crore.
The Products of Pakistan, Bangladesh and China are costing cheaper and this is the reason Varanasi is loosing market in international market, Rajat informed. The dollar has come down from Rs 46 to Rs 38 and it is only the exporters who have been feeling the heat in Varanasi.
In Varanasi there are 11 companies which are mainly into the export business and all of them are facing crisis these days due to the depreciation of dollar. 'Our demand is going down in the international market while the sub standard companies from Bangaldesh and Pakistan are capturing the business because of cheap products.
The silk importers from Varanasi confirmed that they have been loosing business because of strong rupee in the international market.
The silk industrialists in Varanasi have already sent letters to the union as well as the state government asking it to provide tax relaxation to the industry. 'We want protection from government right now otherwise Silk products from Varanasi will loose international market and it would become a dying art in the world', said Rajat. Government should come forward and save us from being ruined, said he while talking to Business Standard.
