There has been a sharp drop in the government’s earnings from Afghanistan’s famous carpets. And it cannot be blamed on the global economic crisis. A report by Ali Arash.
There has been a sharp drop in the government’s earnings from Afghanistan’s famous carpets. And it cannot be blamed on the global economic crisis. A report by Ali Arash.The Afghanistan Chamber of Commerce and Industry has reported an unheard of decline in carpet making in the country: annual revenue has shrunk from 262 million USD five year’s back to 49 million USD.
The Carpet Export and Production Association stated production was over one million sq metres in 2008. Last year it had declined to 50,000 sq metres of carpets, and 7,000 sq metres of rugs.
The government’s failure to provide processing facilities has meant also that skilled carpet workers have migrated to jobs in the thriving carpet market in neighbouring Pakistan. Moreover, production of wool has fallen because of persistent drought conditions in northern Afghanistan.
Khan Jan Alokozai, the vocal deputy chairman of the Chamber of Commerce and Industry, says there has been no investment in carpet production for the last four years. He said the Chamber has tried to provide facilities for carpet and rug craftsmen but due to lack of machinery and marketing the efforts have been futile.
Wahidullah Ghazi Khail, the Ministry of Commerce and Industries’ spokesman, admitted there were problems but defended the government. There are two parks for carpet makers in Andkhoy, Faryab province, and Jalalabad. “We also plan to establish a park in Kabul,” Ghazi Khail said.
That, however, has not stopped the slide in the carpet sector. Abdul Satar Begzad, head of the Carpet Export and Production Association, said the situation was bad for both producers and sellers. “There is a lack of demand and market,” he said. “The domestic carpet industry is stagnating,” he added.
Mohammad Zarif Yadgari of the Association says “more than 70 percent” of Afghan carpets and rugs end up in Pakistan with Made in Pakistan labels.
But Wahidullah Ghazi Khail of the commerce ministry does not agree. “Whoever makes this claim should provide proof that Afghan carpets and rugs are exported to international markets as Pakistani products,” he said. “We will make a complaint,” he added.
Pakistan’s gain
The Carpet Export and Production Association has submitted a list of 17 demands to revive the industry. Pakistan earns 9 million USD annually because of poor washing facilities in Afghanistan, says Begzad. “Though there are 12 factories for washing, we still lose 9 million dollars annually to Pakistan,” he said.
Ministry of Commerce spokesman Ghazi Khail who does not deny Afghan carpets are taken across the border for washing, insists, “The government is making efforts. The current (domestic) situation will improve.”
Begzad also mentioned the fall in natural wool production as a result of widespread drought. “There were more than one million quadrupeds in the north 20 years back. Now, all over Afghanistan, there are 500,000,” he said.
Afghan carpet makers have lost the domestic market also to cheap machine-made imports. “The condition of homemade carpets is not good,” said carpet seller, Abdul Ghafar in Kabul. “Most people use Turkish and Iranian carpets because they are affordable,” he added.
According to him, while a 12 sq metre Iranian carpet costs 100 USD, the Afghan carpet, which is hand-knotted, could be anything upward of 400 USD.
Carpet traders say the government should at least subsidise the cost of raw materials to enable the industry to become self-sufficient. But Ghazi Khail ruled out the possibility of concessions to the sector. “The Afghan government is unable to give subsidy to anyone because we don’t have the financial ability. (Already) the tariffs (on carpets) are low,” he said.
