Carpet industries in Afghanistan’s northeast hit hard as exports plummet

12 Feb 2013

Carpet industries in Afghanistan’s northeast hit hard as exports plummet

KUNDUZ - Carpet traders in Afghanistan’s northeastern Kunduz Province are hit hard by sharp decline in carpet export, which is a major source of income for the local population.

“Since two years ago, we have over production,” said Abdullah Kalantary, the Head of Carpet Weaver’s Union of Kunduz, during a recent interview with UNAMA. “We have not sold as many as we used to.”

Mr. Kalantary feels that more needs to be done to explore potential markets in Europe and North America that constitute big markets for the Afghan carpet industry.

The decline is significant. According to the Carpet Weaver’s Union of Kunduz, the province now produces only 38,000 square metres of carpet annually, which is a sharp decline from about 100,000 square metres produced until six years ago.

Mr. Kalantary said carpet production represented the second biggest source of income for the local population of Kunduz after agriculture.

While admitting that there has been a slump in export, Rahemullah Zahid, the manager of the Private Sector and Industries Unit at the Department Commerce and Industries in Kunduz, said the problem exacerbated after importers chose to take carpets from other countries “especially Iran and Turkey”.

Mr. Zahid also said that some of the problems “of machinery and tools, cutting and washing factories” had been resolved in Kunduz.

Most carpet traders in the northeastern region export their products to Pakistan, where traders then export them overseas. It is estimated about 80 per cent of carpets produced in the region are exported to Pakistan and other neighbouring countries.

The decline of export has also affected carpet weavers’ livelihood. Many have to switch to other employment. According Mr. Kalantary, in the past there were 14,000 carpet weavers in Kunduz, and now there are only 8,000.

Another problem that the traders have to face is that the export destination countries often impose tariff up to 100 per cent, which makes the industry even harder to survive.

“We want the Afghan government to have a bilateral trade agreement with Governments of our trading partners (in Germany, the United States, Russia and Turkey),” added Mr. Kalantary.

The impact of the decline of export has also been felt by carpet washing service. The factory provides services for carpet weavers who need to wash their carpets after being produced before selling to the public. The problem has worsened as they do not have storage to dry the carpets after being washed. It impacts their work especially during the winter season when factories are temporarily closed.

“In winter, our business drops up to 80 per cent,” said Mohammad Osman Nazari, the Manager of a carpet washing and cutting factory in Kunduz. Since 2010 to date, four factory workers have been laid off as a result of lack of work orders and now they employ 10 workers. The factory can wash 100 square metres daily.

The carpet washing factory was established by the German International Cooperation (GIZ) in the province. The funding assistance for the factory has ended.

By UNAMA Kunduz