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 raw-material, 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 Zain-ul-Abidin, popularly known as Budshash or the great king who ruled Kashmir from 1420-70 AD that handicrafts were introduced in Kashmir. The king Zain-ul-Abidin 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 papier-mache, 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 exports-problems 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 hand-made 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 Copyright © 2012 Published by IJMRR. All rights reserved 381 IJMRR/ March 2014/ Volume 4/Issue 3/Article No-8/379-387 ISSN: 2249-7196 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 2004-05 425.00 315.00 24.00 123.00 887.00 2005-06 425.00 310.00 30.00 135.00 900.00 2006-07 450.50 320.00 35.00 144.50 950.00 2007-08 761.27 420.58 37.92 394.82 1614.59 2008-09 457.60 303.45 35.49 303.46 1100.00 2009-10 638.17 201.03 10.15 151.15 1000.00 2010-11 735.10 343.10 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, 2012-13 The figures given above show the craft-wise production in the handicraft sector from 2003-04 to 2010-11.