VARANASI– The world-renowned Banarasi saree and silk industry is reeling under the impact of fresh U.S. tariffs, with traders reporting large-scale order cancellations and even shipments being returned.
According to the Varanasi Textile Industry Association, the continuing situation could result in losses of up to Rs 300 crore annually, threatening the livelihoods of thousands of artisans and raising fears of mass unemployment.
“Exports of Banarasi sarees will decline by 15 to 20 per cent due to these tariffs. Handloom products will be the hardest hit. Every year, Rs 200 to Rs 300 crore worth of exports were sent to the U.S., and that is now under serious threat. Orders are being cancelled, and no new demand is coming in. This is not a minor setback—it is a major blow to Banaras and its industry,” said Rajan Bahl, vice president of the association. He added that the number of handlooms in the region is already shrinking and warned that tariffs will accelerate the decline unless the government intervenes.
Local trader Sarvesh Kumar Srivastava echoed the concern, saying the impact is immediate and severe. “The tariffs have seriously damaged our business. Recently, goods worth Rs 10 lakh were returned. Finished products are on hold, payments are stuck, and the weavers’ livelihoods are in jeopardy. I employ 20 workers, and holding Rs 20 lakh worth of goods has pushed us into deep losses,” he said.
Srivastava urged the government to exempt handloom and handicraft sectors from GST. “Removing the 5 per cent GST would provide relief and boost demand in the domestic market. It would also attract the middle class back to Banarasi sarees. This exemption could help revive the industry and protect artisans and traders at a time when tariffs have endangered their survival,” he said.
Industry leaders stressed that without urgent government support, the Banarasi saree sector could slip into deeper crisis, wiping out a centuries-old tradition and the livelihoods tied to it. (Source: IANS)
