The Export Promotion Council for Handicrafts has said the Severe Acute Respiratory Syndrome will cause significant losses for handicrafts exporters.
The cancellation of two export fairs in Hong Kong, which were expected to generate nearly Rs 1,000 crore (Rs 10 billion) worth of business for the Indian handicrafts industry, had made a huge dent in exports estimates.
The industry may now have to revise its $1.95-billion export target for the current financial year.
"We had set a 20 per cent growth target for 2003-04 with handicraft exports expected to touch $1.95 billion. Though we will try to achieve the target, the effect of Sars will make things tough for exporters," Rakesh Kumar, Executive Director, EPCH, told Business Standard.
Two fairs the Hong Kong Houseware Week and the Hong Kong Gifts and Premium Week slated for the last fortnight of April were cancelled. Kumar said both the fairs were expected to generate business worth Rs 500 crore (Rs 5 billion) each.
There is a huge demand for Indian handicrafts at exhibitions and fairs held at this time of the year as buyers from Europe and the US buy bulk supplies for the December festive season.
Kumar said exporters were now planning to participate in other fairs, including some in the US.
"The perception about Asian economies is not bright and everyone is being suspected of being a possible Sars patient, which is making participation tough for us," Atul Saluja of Encore Exports said.
He said organisers of a fair in Germany recently prevented the Chinese delegation from participating.
Kumar said the government was adding to the panic by making announcements about suspected Sars cases. He said unless confirmed information was available, such announcements should not be made.
During the last financial year, exports of handicrafts increased 20.17 per cent to touch $1.72 billion against $1.43 billion in 2000-01.
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