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2nd Meeting for assessing impact of COVID-19 on Carpet Industry and way forward


In order to assess and review the situation in preview of COVID-19 Carpet Export Promotion Council (CEPC) organised a 2nd meeting through video conferencing with COA Members, representatives of Regional Carpet Manufacturers Associations, Prominent members, Buying Representatives, Industry Associates and Govt. Rep. from DGFT and Department of Industry, Govt. of U.P. on 12th April, 2020 from 11.30 a.m. to 1.30 p.m.

Sh. Siddh Nath Singh, Chairman, CEPC welcome the participants in the meeting and extended thanks for sharing their valuable time for the meeting. Chairman mentioned that today he invited some big players of the industry, Buying Representatives, Officials from the DGFT and State Industry Department, Bhadohi and hopeful to get the useful suggestions for the benefit of the industry.

Chairman informed the participants that Council already have one meeting through Video Conferencing on 9th April, 2020 with Committee Members and Regional Associations and submitted the suggestions received to the Govt. for consideration and hopeful to get the relief soon.

Chairman mentioned that the motive of today’s meeting is to access the situation and note the further concern of the Members in the larger interest of the country and industry. Chairman requested Members for their valuable suggestion so that council can prepare a strategy for revival of the Indian Handmade Carpet Industry.

Suggestions of the Members received during meeting are summarized as under:

1. To allow opening of factories of exporters at the earliest in phased manner with due precautions to complete the pending orders treating it as essential service to avoid export losses to the exporters and exchequer.

2. To take appropriate measures to stop the migration of trained weavers and to provide them food and Medicare facility.

3. To make arrangements for clearance of pending shipments at various ports including ensuring the safe and timely delivery of the export goods on the way to the respective ports including request to waive off the demurrage’s charges by the customs.

4. To request Govt. to extend the time limit for export realization from 180 day to 360 days.

5. To increase the adhoc bank limit of Member by 20% – 25% to ensure the availability of funds.

6. To make arrangements for early clearance of pending GST and DBK Claims of Members by providing relaxation in submission of hard copies of documents.

7. To compensate exporters from the losses on account of forward contract/ booking of foreign exchange with banks.

8. To make R & D for product and market diversification.

9. To request Govt. to provide incentive to exporters like 10% Cash Incentive on exports.

10. To consider and workout a strategy how we will be able to make supply to our buyers after the 3-4 months when the crises are over so that buyer may not opt for alternate resources for their requirements.

11. To work out a suitable proposal for compensation of payment of Wages to weavers from Central or State Government, keeping in view the following –

i. In carpet industry wages is major composition which is approx. 50% of the product cost.

ii. Almost 90% of the production is meant for exports only and for the next 6-9 months may not received new export orders.

iii. 50% of the Exporters comes under MSME.

iv. Source of earning is closed as for the next 6-9 months payments from the buyers is doubtful.

v. Labour Department is pressing to pay full wages to the weavers during the lockdown period – to check the legal completion with social responsibility.

Buying Representatives informed the participants that –

i. Mixed views are receiving from the buyers.
ii. E-Commerce is continuing and stores are closed everywhere.
iii. How social distancing will be applied for weaving the carpets and for a piece of 8 X 10 Hand knotted carpet – minimum 4 weavers are engaged in weaving.
iv. We are requesting buyers not to cancel their orders; extend the delivery schedule and they are understanding the situation.
v. Buyers attitude is positive and asking to pursue their orders.
vi. Buyers know that weavers are working in interior parts and villages and where the chances of infection is very rare and we need to educate them only.

Shri Umesh Kumar Singh, Joint Commissioner, (Industry), Mirzapur Zone, Uttar Pradesh Government appreciated the concern of the Members for the weavers and informed that the U.P. Govt. and Industry department is fully concerned with the Industry and exporting community in the State with due care for safety and is, to resume the supply chain. Their department will take and work out for –

a. Govt. is trying to work out a strategy for re-opening of the factories for clearance of pending orders with security and safety of all concerned.
b. Will look into for compensation on electricity charges during the lockdown period.
c. For Issue of necessary passes to the workers may contact or coordinate with Dy. Commissioner Industry in the concerned districts with due precaution of social distancing for minimum workers.
d. Will try to compensate wages to the weavers under Vishwkarma Saman Yojna – for training and financial benefit of weavers.
e. Request for a suitable package/ proposal from the revival of the industry under ODOP Scheme.

Shri Amit Kumar, Deputy DGFT, Varanasi assured full support from the DGFT office and request Members to inform him the issues on foreign trade and can write on –
Controlroom-dpiit@gov.in or dgftedi@nic.in with the subject COVID-19.

Shri Amit Kumar further mention the need for preparation of specific strategy for short term and long term with need for product and market diversification.

Chairman informed that Council is trying to develop domestic market and requested Govt. for imposing 200% import duty on import of carpets to save the industry. He is looking into the possibility for import of semi-automatic machines to increase the production.

Regarding linking of MANREGA for wage compensation, Chairman informed that he already discussed the issue at highest level, MANREGA is the issue of parliament and not the cabinet.

Chairman mentioned that he is in constant touch with all the stockholders and requested to send their specific concerns in writing to the ED-Secy., CEPC or him directly for redressal of the concern. Chairman also requested Members for timely sharing the update with him and Council for timely action and in larger interest of the industry.

Meeting ended with vote of thanks to the chair.


List of Participants

1. Shri Siddh Nath Singh, Chairman, CEPC —– on Chair
2. Shri Umesh Kumar Gupta, Member COA, CEPC, Bhadohi
3. Shri Bodh Raj Malhotra, Member COA, CEPC, New Delhi
4. Shri Onkar Nath Mishra, Member COA, CEPC Gopiganj, Bhadohi
5. Shri Sheikh Ashiq Ahmad, Member COA, CEPC, Srinagar, J&K
6. Shri Sunil Jain, Member COA, CEPC, Panipat
7. Shri Umesh Singh, Joint Commissioner Industry, Uttar Pradesh Government, Varanasi
8. Shri Amit Kumar, Deputy DGFT, Varanasi.
9. Shri Rajnikant, Padamshree Awardee and Expert on GI, Social Activist, Varanasi
10. Shri R.B. Mathur, Buying Representative and Ex-VC, CEPC, New Delhi
11. Shri Vijay Anant Krishanan, – Buying Representative, Mirzapur
12. Shri Deven Sharma,– Buying Representative, Jaipur
13. Shri Abdul Hadi, Vice President AICMA, Bhadohi
14. Shri Piyush Baranwal, Former Secretary AICMA, Khamaria, Bhadohi
15. Shri Junaid Ansari, President EUPEA, Varanasi
16. Shri Gaurav Sharma, Managing Director, M/s Obeetee Ltd., Mirzapur
17. Shri Rajesh Kumar, Director (Finance), M/s Obeetee Ltd., Mirzapur
18. Shri Arshad Waziri, prominent exporter & Social Activist, Bhadohi
19. Shri Yogesh Choudhary, M/s Jaipur Rugs, Jaipur
20. Shri Kanha Ram, M/s Carpet Palace, Jaipur
21. Shri Ashish Gupta, Meerut
22. Shri Surendra Mittal, Managing Director, M/s Mittal International, Panipat
23. Shri Bholanath Baranwal, M/s Bholanath International, Varanasi
24. Shri Praveen Bansal, Managing Director, M/s Bansal Carpets, Agra
25. Shri P.K. Dubey, C.A. Bhadohi
26. Shri Jitendra Jain, Secretary Woolen Yarn Association, Bhadohi
27. Shri Sanjay Kumar, Executive Director-Cum-Secretary., CEPC, New Delhi
28. Shri Jag Mohan, Publicity Officer, CEPC, New Delhi
29. Shri Anuj, Export Promotion Officer, CEPC, New Delhi
30. Shri Ravi, Export Promotion Officer, CEPC, New Delhi
31. Shri Ashiq Husain Sofi, Regional Officer, CEPC Regional Office Srinagar, J&K