Commanding more than $2 billion in export revenues in its heyday of the early 1990s, the industry now struggles to scrape together around $40 million, marking a dramatic collapse of more than 95 percent.
“In the years when the unkind and cruel US sanctions on the hand-woven carpet sector were imposed... we lost the US, the buyer of more than 70 percent of Iranian hand-woven carpets,“ Zahra Kamani, head of Iran’s National Carpet Centre, told state TV.
But Iran's customs organisation said that during the last year of the Persian calendar that ended in March, exports stood at just $41.7 million.
In the interim, competitors such as India, China, Nepal and Pakistan have seized the opportunity, seeking to fill the gap in the global market.
Some of those rugs even make their way to Iran, where, according to Kamani, at least two million people, including women in rural areas, depend on the carpet-weaving industry for their livelihood -- sometimes earning as little as a few dollars a day.
For decades, Western tourists would pass through Iran, picking up rugs as souvenirs or gifts. But with the country's tourism industry also hit by travel warnings and hostile relations, fewer foreigners are visiting, translating to fewer rug sales.
“It is somewhat difficult for even someone living in a European country to buy a silk carpet for, say, $30,000 to $40,000. The transportation of the carpet is also quite challenging for tourists,“ he added.
Broad international sanctions have cut off vital markets, while flawed domestic currency and foreign-exchange policies -- especially those restricting repatriation of export revenues -- have crippled competitiveness.
- Revitalising industry -
“We have lost some international markets, but we hope that with the country’s trade and currency laws we can resuscitate this industry,“ Trade Minister Mohammad Atabak was quoted as saying by state news agency IRNA in June.
For Nabizadeh, the way out of this crisis is to pay more attention to “current trends in decoration”.
He cited “attracting online customers through social media” and “creating strong branding for carpets” as other possible solutions.
“Even though I always wanted handwoven carpets for my dowry and my family had promised me that, they couldn’t afford them. Instead, we opted for factory-made ones,“ said Shima, a 31-year-old bride-to-be.
“However, many families are choosing factory-made rugs these days because of their lower prices or do not buy carpets altogether if they are of the more needy classes.”
Now, with Iran increasingly losing domestic customers and global markets dominated by lower-cost imitations, the Persian rug risks becoming a relic of a lost golden age, with its legacy hanging by a thread. - AFP
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