Carpet manufacturers in Bhadohi and Varanasi are struggling as exports face setbacks due to changing trade practices and US tariffs. Traditionally, Indian exporters relied on stable wholesalers in the American market. However, young entrepreneurs are now striking quick deals with small retailers, who pay only after products are sold. This shift has blocked funds for mid-level manufacturers and created severe liquidity problems.
Industry experts estimate nearly ₹6,000 crore worth of unsold carpets piled up in warehouses, with demand drying up in the US after steep tariffs imposed by President Donald Trump. These two Uttar Pradesh hubs produce most of India’s handmade carpets, exporting 98 percent of their output, of which 60 percent goes to America. The new approach, traders warn, has broken a decades-old chain of trust and market stability.
Veteran exporters argue that inexperienced entrepreneurs seek higher profits but underestimate risks. They highlight how older systems ensured faster payments and steadier sales. Meanwhile, manufacturers like Vijay Kapoor stress quality control, upfront payments, and stronger ties with weavers as the only way to survive global competition.
Industry leaders and the Carpet Export Promotion Council are urging the government to introduce bailout packages and advertise Indian products globally, pointing out that Chinese exporters receive stronger state support. Without immediate relief, traders fear long-term damage to both manufacturers and lakhs of weavers who depend on this sector.
