Summary
Ongoing tensions between India and Bangladesh have impacted the sari business in India, especially the Banarasi sari exports to Bangladesh. Restrictions and retaliatory bans on imports between the two countries have led to a significant drop in business for weavers and traders in Varanasi.
Key Facts
- Varanasi is a city in India known for producing Banarasi saris, which are famous for their intricate craftsmanship.
- Diplomatic tensions have risen between India and Bangladesh since an uprising in Bangladesh led to a change in government.
- Bangladesh restricted imports from India, including yarn and rice, leading to Indian retaliation by banning Bangladeshi goods like readymade garments.
- Despite the import ban, Bangladeshi saris can still enter India through sea routes, which are more costly and slower.
- The sari business in Varanasi, which relied heavily on exports to Bangladesh, has seen a more than 50% drop in sales.
- Economic challenges for sari weavers include previous government policies, the COVID-19 pandemic, and competition from other regions in India.
- Many weavers in Varanasi have left the industry due to these cumulative pressures.
- A trader in Varanasi reports that business with Bangladesh has stalled, and he is also owed money from Bangladeshi clients.
