International Journal of Management Research and Review

IJMRR/ March 2014/ Volume 4/Issue 3/Article No-8/379-387 ISSN: 2249-7196

INTERNATIONAL JOURNAL OF MANAGEMENT RESEARCH AND REVIEW

HANDICRAFT INDUSTRY IN JAMMU & KASHMIR: CHALLENGES AND STRATEGIES Shazia Hamid* 1, Dr. Imtiyaz-ul-Haq** 1Research Scholar, Department of Economics, University of Kashmir, India. 2Senior Assistant Professor, Department of Economics, University of Kashmir, India. ABSTRACT The present study entitled ‘Handicraft Industry in Jammu & Kashmir: Challenges and strategies’ deals with an analytical study of the problems of handicraft industry in Jammu and Kashmir state and the strategies that could be followed for the development of this industry. Since times immemorial, this industry has played a commendable role in the economic development of the state, as it affords great potential for exports and employment generation besides providing financial support to the economy of the Jammu and Kashmir state. The reason being that handicraft activities are best suited to the state as they are more labor intensive and less capital intensive as well as environment friendly. The main focus of the study is to assess the degree of problems and issues which exist in the handicraft industry and put forward some preliminary suggestions as to how they may be resolved to ensure that this sector lives up to expectations. The study demonstrated that handicraft sector faces dearth of capital besides rawmaterial, power supply, inaccessibility and shortage of labor etc. often laborers in this industry find themselves fighting against all odds at every stage of their business. This requires the government to provide subsidiaries for the growth of handicraft industry especially in the early stages. Keywords: Handicraft industry, Challenges, Strategies, Henry Garret’s Ranking Technique. INTRODUCTION OF THE HANDICRAFT INDUSTRY The state of Jammu and Kashmir is famous throughout the world for its scenic beauty, bracing climate and craftsmanship skills. It was during the reign of Sultan ZainulAbidin, popularly known as Budshash or the great king who ruled Kashmir from 142070 AD that handicrafts were introduced in Kashmir. The king ZainulAbidin hired skilled craftsmen from Central Asia to train local inhabitants in a number of handicrafts which were till then altogether unknown to the people of the state. Since then craft legacies continued and got encouragement and patronage from different rulers, princes, visitors to the valley, thus skills passing on from generation to generation. Jammu & Kashmir has comparative advantage in producing high quality and world famous fabrics of Pashmina and Kani shawls, silken, woolen and cotton fabrics and crafts like papiermache, wood work, Tila work, Sozni, Crewel, etc. These products are famous world over because of their unique craftsmanship. Handicrafts in Jammu and Kashmir present a fascinating spectrum of creative imagination and design that is intimately woven into the life pattern of its people. The agility of local

*Corresponding Author www.ijmrr.com 379

IJMRR/ March 2014/ Volume 4/Issue 3/Article No-8/379-387 ISSN: 2249-7196 artisans coupled with their artistic imagination reflected through a wide range of products has delighted people world over for centuries. According to United Nations Educational, Scientific and Cultural Organization/Information Technology Community (UNESCO /ITC) International Symposium on “Crafts and the International Market: Trade and Customs Codification”, Manila, Philippines, October 1997: Handicrafts can be defined as products which are produced either completely by hand or with the help of tools. Mechanical tools may be used as long as the direct manual contribution of the artisan remains the most substantial component of the finished product. Handicrafts are made from raw materials and can be produced in unlimited numbers. Such products can be utilitarian, aesthetic, artistic, creative, culturally attached, decorative, functional, traditional, religiously and socially symbolic and significant. The handicraft sector has, however, suffered due to its unorganized structure, constraints of lack of skilled education, low capital, lack of exposure to new technologies, absence of market intelligence, poor infrastructure and institutional framework. It is against this backdrop that the present paper attempts to highlight the problems of this sector in J&K and to offer strategies so that this sector flourishes. Besides, an attempt has made to explore facts regarding the existing status of Kashmiri Handicraft industry. OBJECTIVES 1. To assess the existing status of Kashmiri Handicraft industry 2. To ascertain the challenges handicraft industry is facing today and suggest measures BRIEF REVIEW OF RELATED LITERATURE Vincent and Anu 1 (1982) in their study revealed the problems and issues related to the exports of handicrafts sector. This paper provides an outline of some problems associated with handicraft sector which include scarcity of working capital, inadequacy of raw material supplies, shortage of skilled labour and delivery problems of the existing markets. Further this paper puts forward some preliminary suggestions as to how they may be resolved, to ensure that this sector lines up to the expectations. Qemal Balliu 2 (2006) in his study pointed out the key issues, problems and opportunities of the handicraft sector in Shkodra region. The paper throws light on the existing and perceived barriers for the development of the traditional handicraft sector in the region. The main findings of the study are specific to the handicraft sector. Marof Redzuan and Fariborz Araf 3 (2010) pointed in their study the constraints and potentials faced by the handicraft industry in a peripheral and underdeveloped region of Malaysia. The study throws light on the problems faced by the handicraft sector in the rural

1 Vincent cable and Anu Weston (1982) “The role of handicraft exportsproblems and prospects”, Overseas Development Institute, Vol XX, No. 10 2 Qemal Balliu (2006), “Territorial Diagnosis of the Handicraft Sector in Shkodra Region of Albania, International Labour Organisation National Expert 3 Maroof Redzuan and Fariborz Arif (2010) “Constraints and potentials of Handicrafts industry in underdeveloped region of Malaysia”, Vol XX page121

Copyright © 2012 Published by IJMRR. All rights reserved 380 IJMRR/ March 2014/ Volume 4/Issue 3/Article No-8/379-387 ISSN: 2249-7196 areas of Malaysia. Despite the importance of rural industries, the country does not have a coordinated rural industrialization programme. Manjusmita Dash and Sanjay Mahapatra4 (2011) pointed in their paper different problems associated with craftsmen engaged in handicraft sector in Orissa, India. Pointing the major problems related to handicrafts, the authors expressed that there is no control over handicraft products that are manufactured in Orissa. This is further worsened by the low cost handicrafts products brought from Kolkata and other places to the Cuttack market making it difficult for the local handmade products to compete with the outside products. The authors suggest that craftsmen should be provided with loans and necessary assistance by govt/Semi govt agency. RESEARCH APPROACH Research methodology plays an important part in any investigation. For the present study data was obtained from both primary and secondary sources. The main sources of secondary data are: Books and Journals, official records of various departments. The primary data was gathered through a field study in District Srinagar by administering a well designed open end questionnaire. The primary survey was conducted among 201 handicraft units scattered over the entire range of district Srinagar. The information was collected through a face to face situation from the sampling frame. The sampling method chosen for this survey research was ‘non probability judgment sampling’ as the researcher was well aware of the handicraft units because of her previous experience in the same trade. Henry Garrett‟s Ranking Technique has also been used to find the magnitude of the problems faced by the unit holders engaged in handicraft sector. To find the relative magnitude of problems, the respondents were asked to rank the given problems accordingly. The order of merit given by the respondents was converted into ranks by using the following formula.

Percentage Position =

Where

Rij = Rank given for i th item by j th individual; N j = Number of items ranked by j th individual. The percentage position of each rank thus obtained is converted into scores by referring to the table given by Henry Garrett. Then, for each problem, the scores of individual respondents were added together and divided by the total number of respondents for whom the scores were added. These mean scores for all the problems were arranged in order of ranks and inferences were drawn. STATUS OF HANDICRAFT GOODS DURING 2003-04 to 2010-11 The handicrafts industry occupies an important place in the economy of the State. This sector engages approximately 3.74 lakh artisans in the state.

4 Sanjay Mahapatra and Manjusmita Dash (2011), Problems Associated with Artisans in Making of Handicrafts in Orissa, India, Vol.6, No.1

Table 1: Production of Handicraft goods (in Crores) Year Carpet Shawls Paper Other items Total Machie 2003 04 450.53 275.00 13.50 82.50 821. 53 200405 425.00 315.00 24.00 123.00 887.00 200506 425.00 310.00 30.00 135.00 900.00 200607 450.50 320.00 35.00 144.50 950.00 200708 761.27 420.58 37.92 394.82 1614.59 200809 457.60 303.45 35.49 303.46 1100.00 200910 638.17 201.03 10.15 151.15 1000.00 201011 735.10 343.10 38.32 533.78 1650.30 %age composition of 45 % 21 % 2 % 32 % 100 % Handicraft production Average annual 9 % 4 % 26 % 78 % 14 % growth rate Source: Economic Survey J&K, 201213 The figures given above show the craftwise production in the handicraft sector from 200304 to 201011. The overall production of the handicraft sector has been quite encouraging as it increased from Rs 821.53 crore in 200304 to Rs1650.30 crore during 201011, thereby registering annual average growth of 14%. As regarding the composition, the carpets account for major chunk and constitute 45% of the total volume of production. This is followed by “other products” (chain stitch, namda, crewel, wood carving etc.) with 32% and shawls 21%. Papier Machie constitutes only 2% of the total production value. Craftwise trend analysis indicate that while the overall production volume has almost doubled during the period 200304 to 201011, there has been sixfold increase in production of “other products” registering average annual growth of 78%. Papier Machie and Carpets have recorded average growth of 26% and 9% respectively with lowest increase recorded for shawl products viz. only 4%. Table 2: Exports of Handicraft goods during 2003-04 to 2010-11 (in crores) Year Carpet Shawls Paper Other Total Machie items 2003 04 334.00 196.00 10.50 54.50 595.00 200405 307.50 210.00 17.50 107.00 642.00 200506 325.00 220.00 27.50 132.50 705.00 2006 07 351.50 275.00 31.50 127.00 785.00 2007 08 649.02 31 0.29 33.65 207.51 1200.47 200809 326.00 226.50 41.00 112.00 705.50 200910 407.73 137.13 30.27 86.14 661.27 201011 412.25 302.00 66.50 223.15 1004.10 %age 41.08 % 30.08 % 6.62 % 22.22 % 100.00 % Contribution Source: Economic Survey J&K, 201213

Carpets and shawls alone account for 71% of the total export of handicraft products followed by “other products” (22%) and paper machie (7%). The export of handicraft products increased from Rs 595.00 Crore to Rs 1004.10 Crore during 201011. The exports decelerated during 200809 and 200910 which is primarily attributed to the global recession in the world market. However, during 201011, the exports were of the order of Rs 441.24 Crore. The department is taking necessary steps to boost the export of handicrafts products in the State. PROBLEMS ASSOCIATED WITH HANDICRAFT INDUSTRY IN J&K The handicrafts of J&K state do not only appeal to the aesthetic sense of people and their taste for beauty but also play an indispensible role in the economic development of the state. Realizing the potential of handicraft sector, the government of the state has taken various measures not only to ensure a smooth functioning of this sector but also to invigorate it with new ideas and visions. Despite attempts by the state government to strengthen this industry, it is seen to face a number of problems. A frame of 201 handicraft units were surveyed and interviewed in order to assess and find out the major problems associated with the handicraft industry. The following problems were reported to be crucial by the respondents: 1. Inadequate supply and higher prices of raw material: The handicraft industry faces many problems with respect to the supply of rawmaterial which include higher prices of rawmaterial and insufficient supply. One tends to assume that if handicraft items are made traditionally then most of the rawmaterial would also be available locally. But the survey suggests that 60 % of rawmaterial used in the handicraft activities comes from outside the state as in case of yarn which is mostly imported from Jayshree woolen mills and Woolworth yarn companies being large scale exporters of rawmaterial. During the last decade the rates of the raw material especially needed for carpet weaving, shawl embroidery, kani shawl and other crafts have increased substantially making it difficult for the artisans to procure these items for smoothly running their activities. Many a times the artisans are compelled to arrange these items at higher rates from the suppliers on credit basis. 2. Financial Problem: Credit availability is crucial for any production activity and handicraft industry is no exception to it. Although handicraft production requires little fixed capital but for some handicraft items (carpets, pashmina shawls, gemstones, wood carving) rawmaterial cost per unit of output are very high. This leads to retardation in the pace of production process as the artisans have to wait for some five to six months to cover these costs. As per the interview with the respondents, it was found that even if the credit is available, either the interest rates are high or the financial procedures are so cumbersome that an artisan finds it difficult to knock at the doors of financial institutions for help. As evident from the Survey, a low percentage i.e. 30% of artisans rely on institutional agencies like banks, government and cooperatives while as about 70% of the artisans rely on their self generated funds which include financial help from friends and relatives. 3. Poor infrastructure: During the survey it was found that most of the handicraft units are experiencing the difficulty of adequate work place. The reason is that the handicraft units in majority have been established in the residential houses (about 55%) by the artisans besides a very few which were found to be located in the industrial estates. It was found that the

Copyright © 2012 Published by IJMRR. All rights reserved 383 IJMRR/ March 2014/ Volume 4/Issue 3/Article No-8/379-387 ISSN: 2249-7196 artisans who work in the industrial estates experience peaceful and healthy environment which results in an increase in production as well as labor productivity. 4. Design upgradation and product diversification: In order to compete with the markets at global level, there is a strong urge for introduction of new designs and diversification of handicraft goods. This requires strengthening of institutes like Indian Institute of Carpet Technology and Craft Development Institute and linking them with handicraft and handloom departments. Further the traditional looms in the state should be replaced by modern looms so as to ease the weaver and hence increase the efficiency level of these crafts. 5. Lack of technical/managerial skills: Shortage of skilled labor is usually considered one of the major constraints for the development of a production sector. Keeping in view the scope for development of handicraft industry in the state, there is a need to provide more trained artisans by intensifying training programmes in the state. Lack of trained artisans has certain reasons to it. First is the low level of market wage rate which fails to attract bulk of workers to this sector. Secondly, it is the low rate of stipend given to per trainee which at present is Rs 500 per month. Thirdly, time lag between training period and acquiring of a particular skill. Besides, if a trainee acquires skill at the hands of a craftsman he has to offer his one or two years of service to the master craftsman at minimal wages. Thus, in order to attract suitable artisans to this industry there is a need to revise the wages paid to the artisans. Also, during the survey it was found that most of the handicraft units are managed by owners who mostly do not possess any formal training. In order to reap the best advantage of the available resources, it is essential that managerial skills are developed in this sector. During the survey, it was found that 88% of the handicraft units are managed by owners who do not possess any formal training. 6. Frequent Power breakdown: Regular and adequate power supply is one of the essential requirements of any production process to work effectively. As per the survey, it was reported by the respondents hailing from old city that inadequate and irregular power supply was the major hindrance for their efficient working. About 30% of the artisans complained about erratic power supplies. 7. Marketing problems: The handicraft industry in J&K faces innumerous marketing problems. These include, proper and effective advertising at national and international level. In addition to this, higher cost of production and absence of quality control adds to the marketing troubles of handicraft industry. This is further aggravated by the competition from other states particularly from Amritsar producing similar goods at cheaper rates and then selling in the name of Kashmiri handicrafts as reported by the respondents in majority. 8. Others: Other problems which include poor transportation facilities, obsolete tools and equipments, poor quality of roads, lack of awareness with latest trends mainly in the international market, lack of practical implementation of government policies/schemes and time consuming and expensive designing pattern are some of the other problems as reported by the respondents. As per information collected during the field survey conducted on handicraft industry, the respondents were asked to rank the given problems according to the magnitude of the problem. The technique used to rank the problems faced by the artisans/workers according to their magnitude, is Garrett’s Ranking Technique as shown below.

Table 3: Problems Faced by Handicraft Industry Problems Total Average Garrett’s Scores Scores Rank In adequate supply and 16280 54.26 I higher price of raw material Financial Problem 15765 52.55 II Poor Infrastructure 15628 52.09 III Design upgradation and 15222 50.74 IV product diversification Lack of 14962 49.87 V Technical/Managerial skills Marketing Problems 14234 47.44 VI Frequent Power Breakdown 13958 46.52 VII Others 13647 45.49 VIII Source: Field Survey

Fig 1: Problems of Handicraft Industry As is clear from table 3 and figure above, the most crucial problems faced by the handicraft industry include inadequate supply and higher price of raw material, problems pertaining to availability of finance, design upgradation and product diversification, poor infrastructure, lack of technical/managerial skills, marketing problems etc. RECOMMENDATIONS After an indepth study of the handicraft sector and a review of the major problems of the industry, following recommendations are made: 1. The government of the state should take initiatives to develop and maintain sufficient raw material supplies at a steady price for handicraft industry through policies and regulations by means of the establishment of supply cooperatives or buying groups. 2. For ensuring adequate availability of yarn, Price Monitoring Committee should ensure that as far as possible, prices of yarn remain reasonable and stable so as to enhance the working of Shawl industry.

3. To meet the credit requirements financial literacy should be provided. Also, interest subsidy should be considered to bring the rate of interest at par with that for agriculture sector to make credit easily available to the handicraft artisans, weavers, members of cooperative societies and craftsmen engaged in different handicraft activities. 4. To attract more and more buyers both within and outside the country, promotional and marketing organizations must give due emphasis on wide publicity of various local products. For this frequent buyers and sellers meets may be organized by promotional organizations. 5. In order to protect the Kashmiri handicrafts from the external competition in terms of imitated items, government should set up some institutions that would work for the protection of the Kashmiri handicrafts by giving them an identification code to differentiate these items from machine made goods. 6. Keeping in view the globalization and competition, Government should establish quality control centers to test the quality of handicraft items. 7. More training centers should be established to impart training to youth involved in handicraft sector so as to upgrade the skills of artisans for enhancing their productivity. 8. The government should devise a policy to ensure a steady power supply in the industrial estates. 9. One important reason due to which handicraft export is low in the international market is that handcraft workers/artisans are not able to match their competitors in terms of tools, techniques and technology. They are using decades’ old technologies in manufacturing the crafts which takes much longer time. The government should bring in new technology for the craft manufacturers and provide them training to handle the updated tools. CONCLUSION The Handicraft sector known for its world famous products has a very vital significance in the economic development of the J&K State, especially in absence of necessary infrastructure required for large scale industrialization. Apart from the fact that enterprises in this sector can be established with small investments, it has the potential to provide large employment opportunities and penetrate the international markets. Besides activities in this sector apparently are environment friendly providing the basis for sustainable development. The findings from the field study reveal that handicraft sector of J&K is experiencing certain difficulties in the way of its development. On the production front, the main problems are nonavailability of timely and adequate rawmaterial as well as finance at reasonable rates. Other problems equally hindering the smooth production process are poor infrastructure, non availability of sufficient power supply, inadequate wages, lack of incentives and dearth of common facility centers. All these problems warrant immediate attention of the government towards this industry to restrain the artisans from shifting to new ventures for employment and livelihood. Thus, in order to develop the handicraft industry, there is a need for specific plan of development for the industry. There should be concerted action and policy between agencies that assist the development of industry, particularly in eliminating the previously mentioned constraints.

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