Nearly two months after the outbreak of conflict in Iran, Kashmir’s handicraft industry is facing a growing crisis, with consignments stuck in the Valley and shipments to key Gulf markets remaining suspended, exporters said.
Trade representatives said fresh orders have dropped sharply, payments have been delayed and inventories are piling up as uncertainty linked to the conflict continues to disrupt trade routes and dampen buyer sentiment.
Javed Ahmad Tenga, exporter and President of the Kashmir Chamber of Commerce and Industry, said consignments meant for West Asian markets had been stranded since the onset of the conflict.
“Even bulk shipments destined for West Asian markets during Ramadhan remain stalled in the Valley,” Tenga said.
He said Ramadhan, typically the peak export season for Kashmiri handicrafts, saw an unusual downturn this year, with demand for items such as prayer rugs, carpets and papier-mâché products remaining weak. The season, which ended on March 21, recorded “little to no orders,” marking a sharp deviation from normal trends, he added.
The Gulf region accounts for a major share of Kashmir’s handicraft exports, and the ongoing disruption has triggered a liquidity crunch across the sector, affecting thousands of artisans, weavers and small exporters dependent on overseas demand.
Official data show the sector employs more than 4.4 lakh artisans, making it the second-largest employment generator in the region after agriculture.
“We have stopped producing new items as sales have declined significantly due to the conflict,” said Bashir Ahmad, a papier-mâché artisan in Srinagar.
He said that the industry had already borne the brunt of the Russia-Ukraine war.
Kashmir’s handicraft exports have nearly doubled over the past five years, rising from about ₹1,000 crore to ₹2,000 crore, according to industry estimates. However, exporters warn that the current disruption threatens to slow the sector’s growth momentum, as key overseas markets remain uncertain and trade flows weaken further.
Published on April 24, 2026