Effects of Demonitization & GST on Chikan

My friends ask me that i have not been active on WordPress from a long time while so many happenings have taken place in the meanwhile on which my insights were much expected.

I’ve myself been very busy to understand & work according to the laws of the government. This took a little time to respond. Sorry for that.
I know that my friends have 2 things in particular on which they want to draw my attention to. First demonetization and second GST (Goods and Services Tax) and its impact on Chikan industry.
DEMONETIZATION was a good step to tighten the noose on black money which failed due to many reasons mainly:
1. Financial & Legal Advisors.
2. Bankers
3. Security Staff
4. Commission Agents &
5. Help from friends and dependents

FINANCIAL & LEGAL ADVISORS devised ways to deposit black money in banks, insurance & other investment sectors or pay demonetized currency to suppliers & other outstanding govt. bills as electricity, water tax, house tax, etc.
BANKERS on day 1 worked in military style – NATION FIRST. Clearks worked with full devotion till 3-4 days. Then when bankers understood how they may benefit from demonetization, they started working the anti-national way which included the roles of SECURITY STAFF & COMMISSION AGENTS.
In a bizarre incident SECURITY STAFF refilling ATMs flew away with cash van. Other instances of delivering new currency at “customer’s” doorsteps in “collaboration” of COMMISSION AGENTS have also come to light.

COMMISSION AGENTS charged from 15% in the start to 40% to 60% by the final date (for depositing old notes). Some COMMISSION AGENTS were also caught by tip – off by authorities of railways, roads & by intelligence and police with huge sums of demonetized currency.

FRIENDS & DEPENDENTS deposited some money in their accounts which they paid back in later months. They also stood in queue to change the currency everyday for long hours.
Queuing for long hours to change currency of known or even unknown persons fetched these ‘line-mans’ 300 to 500 rupees a day. These were labourers who used to work as rickshaw pullers, masons & porters.

IMPACT OF DEMONETIZATION ON CHIKAN-KARI

The time was for 2017 season’s production which failed flat on the face as all the money went inside the bank not to come back soon. E-payments of any amount was permissible but the artisans had no bank accounts.
The government of Narendra Modi can’t be blamed for this as it had given ample time to the citizen to open ‘Jan-Dhan’ bank accounts which the artisans (like many other citizen) did not.
However, with the current situation the artisans stopped bringing ready goods as they knew they would be paid off in old currency which also put the brakes on acceptance of material for new production.

Point to be noted here, the artisans who had bank accounts in their villages took payment through cheques but they did not clear even in 30-40 days. Clearance (of cheques) in cities were taking more than 15 days in that time due to the rush in banks which was not giving clerks sufficient time to look in matters other than cash dealings.

So a cheque became useless a useless piece of paper for poor artisan during those days.

An instance that the Mahajans (money lenders) were taking 30%- 40% commission to pay cash right away against those cheques which was not a good bet for an artisan was also reported.

Overall, Chikan production fell to zero in those 2 months. It affected both the manufacturer & the retailer. For the manufacturer it was a GOOD period because no stock was produced, season came good, their old & stagnant stock got sold out. On the other hand it was BAD for the retailer.

Stocks were selling out due to the good season & the retailer was left with nothing else to clear the stagnant stock of the manufacturer. It was really very hard to convince the customer with the dead stock. Salesmen got a hard time & the customer was also not very satisfied.

The above statement can be understood well with sales in yearly Hyderabad exhibition where Hyderabadi people rejected them & did not give even 35% sales as in previous years. Hyderabad & Vijaywada exhibitions are places where almost all the dead stock of this season of a manufacturer gets sold out at very cheap prices (sometimes even cheaper than from Lucknow’s price).

This impression of that period on the customers’ minds is a very negative signal for the industry. Not all may understand but that will become a wound which can take a lot of time & effort to heal.

It must also be noted that Chikan roughly covers just 1% of garment industry in India so a customer has many other options whereas Chikan walahs have none.

IMPACT OF GST ON CHIKAN-KARI

Chikan & other hand-made goods like zardozi & Benarasi Saree were exempted from any kind of tax (even registration) to promote local craftsmen & trade since 1947 when India gained independence.

Traders of fabrics (uncut cloth) & Sarees were also exempt from registration & tax. Under GST these came under 5% tax. Surat in Gujrat state is the main supplier of fabrics & sarees to the entire country. It went on strike for 30-40 days. Benaras was on strike for 15-20 days. Chikan traders downed their shutters for 2-4 days. Zardozi traders took out a march in old city area against GST. But this all fetched no results.

We are talking here on Chikan trade, it got impacted. No fabric (base material) was coming from Surat in these 30-40 days. Morever, Chikan traders – in the hope that GST will not be implemented on them, did not register till 20th July. Till today just 50%-65% have registered themselves.

Due to this fabric from Surat is still not being sent to the traders here as it is mandatory to have a GST number for the goods to move from one state to the other though for the time being.

The timing of GST has affected Chikan production for Dussehra & Deepawali when it gets sold the most in Bengal, Maharashtra & some parts of southern India.

Retail buyers (customers) are getting bored by the same stuff. This scenario is going to stay for some months. Its not very easy to predict if all’s going to end well as the prices are bound to increase by almost 20% in Chikan.

Its not new that 15%-20% price hike has never touched Chikan sales. Chikan has got dearer by at least 100% in the previous 5 years by rate increase in price of cloth or workmanship, so it may be said that customers will absorb such hike for their love for Chikan-kari. But its also our duty to give them back the love they give us by offering new designs of garments & prints (blocks) and better quality & workmanship.

Once again a big THANK YOU, dil se.. to all the Chikan Lovers for standing by us in these difficult times.

DOES THE CHIKAN INDUSTRY NEED A QUALITY CHECK ?

DOES THE CHIKAN INDUSTRY NEED A QUALITY CHECK? by Devanshi Seth and Renu Singh (Lucknow Times, TOI Mar.2nd, 2014)
Actress Shweta Tiwari  has been a regular visitor to Lucknow since her childhood days, and she loves to shop for chikan clothes every time she’s here. But while she’s a big fan of chikan embroidery, she’s not very happy with her experience shopping for the same in Lucknow. “Though I am a patron of chikan clothes, I have noticed aaj-kal yahan par bahut saara nakli chikan milta hai. I was fooled on my last visit into fake chikan stuff, and that really upset me. Mujhe chikan bolkar bahut expensive sa kuch fabric becha tha, which was was not pure chikan. I had bought two expensive chikan saris. And taking the lesson from that incident, I have decided to take my Masi along every time I go shopping,” she shared.
Surely, the TV star is not alone in being duped in Lucknow, known throughout the world for its famed craft of chikankari. Tourists are often misled by touts into shopping at specific chikan stores, from where the latter earn a fixed commission on sales. Some of these shops often dole out low grade chikan stuff to the unaware buyer. Worse still, there is machine-made chikan in the market now, being sold as the genuine hand embroidered stuff.
“That’s the worst – duping people by selling them machine embroidered clothes, and calling it chikan!” rues Vani Anand, a Lucknow-based fashion designer who specialises in chikankari work. She adds, “And that is because people are not aware of what chikankari really is. When I put exhibitions in other cities, I have people who ask if this is Pakistani chikan; some of them just call it Lakhnawi work, they don’t even know it’s chikan. For outsiders, any thread work is chikan work.”
This is the first part of the problem that PEOPLE ARE NOT AWARE OF GENUINE CHIKANKARI.
The second problem is that CHEAP GOODS ARE IN DEMAND. While the discerning buyer is willing to pay for the intricate hand embroidery that chikan is known to be, the uninitiated assume that if in Lucknow, they should be able to take home chikan clothes for much less. “It’s very common, relatives visiting us from different cities want us to take them shopping for inexpensive chikan. They don’t realise that good handwork comes for a price,” says Beena Sood, homemaker, and goes on to add, “But we can’t blame them… They don’t have any clue about what is good chikan work and what’s not. Shopkeepers often pass off poor quality work as a great piece, because they know IT’S EASIER TO SELL AN INEXPENSIVE GARMENT THAN TO EXPLAIN WHY A PARTICULAR PIECE IS PRICED SO HIGH.”

Agrees Vani, and says, “People are willing to pay more for zardozi, they pay more for gota patti, phulkari and other embroideries, but they want to buy cheap chikan. Why? We need to make buyers aware about what they are buying and why it needs to be priced at a certain level.”
I PRESONALLY DO NOT AGREE WITH VANI JI HERE. SHE IS AMONG THE FEW WHO HAVE TAKEN CHIKAN-KARI TO THIS (HIGH) LEVEL. SHE ENJOYS A GOOD CLIENT BASE. THEY LOVE HER FOR WHAT SHE IS, AND IT IS UNDOUBTLY HER HARD WORK. WHATEVER SHE MAKES, FLIES OFF THE RACK. SO THERE IS NO QUESTION THAT SHE MAY EVER HAVE FACED THE PROBLEM OF CLIENTS ASKING FOR CHEAP CHIKAN.
The article further recommends A QUALITY MARK FOR CHIKAN PRODUCTS which according to me is a useless point which has been put to conclude it well with a suggestion.
If you wish to carry on reading, here it is:
The problem, say chikan manufacturers, is that there is no quality control in the goods being produced. A quality mark for chikan goods could perhaps solve the problem, according to the findings of a survey conducted by students during Manfest, IIM Lucknow’s management festival. Eighteen management students from various institutions from across the country conducted the survey to come up with recommendations for the upgradation of the largely unorganised chikankari industry. The students spoke to consumers, wholesale and retail dealers in Lucknow’s Chowk area, known to be the hub of the craft. Anuraag Dhingra, vertical manager for media relations Manfest, shared the details of the recommendations, “Sellers in Lucknow admitted that against the huge demand for export of chikankari stuff, only 20% of it is met by the industry. I ADD HERE THAT THE CHECKING & STRICTNESS (of quality & time) IS SO HIGH FOR THE LAYMAN (read Chikan Manufacturers) THAT THEY FEAR FOR REJECTION OF GOODS AND ALSO THAT THE SIZES THEY (the Importes) GIVE DO NOT MATCH WITH LOCAL SIZES, THEREFORE THE REJECTED LOT CAN NOT BE SOLD IN THE LOCAL MARKETS, ITS A TOTAL WASTE. FOR THEM A BIRD IN HAND IS BETTER THAN TWO IN THE BUSH -GALEY KI HADDI, NA NIGAL SAKO, NA UGAL SAKO. The recommendations made for the upgradation of the industry were: one, the need of government intervention (WHAT HAS GOVERNMENT INTERVENTION DONE SO FAR IN ANY INDUSTRY OTHER THAN TO FILL ITS OWN POCKETS, ise to kam se kam is se door hi rakho) to keep a tab on the unorganised industry; two, the requirement for capital to meet the cost of production (AB CAPITAL KI KAMI KAHAN SE AA GAYI MANUFACTURERS KO? faltu baat karta hai budbakht); and three, a quality mark for Lucknow chikan that distinguishes it from other varieties in the market (ANOTHER USELESS POINT).”
Elaborating on the need of a quality mark, Vinod Khanna (I MAY NOT KNOW HIM PERSONALLY), a whole sale dealer of chikan products in Chowk (BUT THIS IS ONE PLACE WHERE A CHUNK OF B to D GRADE CHIKAN IS MADE), adds, “We are facing competition from other varieties of chikan products available in the market, so the industry requires a quality mark that distinguishes it from others and consumers are not fooled into buying second (HA..HA..) grade stuff.”
Agrees Muzaffar Ali, who uses chikankari work liberally in the clothes he designs, and says, “Yes, of course, there should be a quality mark for chikan (JUST LIKE WOOLMARK, SILKMARK,etc.?).”
But while on paper the idea of a quality mark sounds near perfect, in reality it may not be so, point out industry insiders (NOW THIS IS WHAT I CALL A GOOD POINT). “What happens is that quality mark certification is often sold to manufacturers after the goods are produced, and they don’t necessarily guarantee a certain standard,” avers Vinod Punjabi, who owns a chikan goods’ store in Hazratganj, “The process of certification needs to be spot on, something like the gold hallmarking process. But I don’t think it’s possible in the chikan industry.”
I RECOMMEND THAT IF A GENERAL CRAFTMARK IS USED, ALL THESE WORK OUTS WILL GO DOWN THE DRAIN. A CRAFTMARK CERTIFICATE IS AVAILABLE FROM DELHI, THEY HAVE A SITE. IT IS GIVEN TO PRODUCTS, ARTISANS/ TRADERS / MANUFACTURERS WHO ARE IN THE BUSINESS OF HAND MADE.
ANOTHER WEAK POINT HIGHLIGHTED BY THE (NEWS) PAPER :
WHAT HAPPENED TO THE G.I. MARK FOR LUCKNOW CHIKAN?
While buyers and manufacturers discuss the need for a quality check for chikan, it is interesting to note that just about no one remembers that Lucknow Chikan was given the Geographical Indication(GI) mark under Intellectual Property India, way back in 2008. “The GI mark ensures barcoding of design, location and name of the artisan manufacturing the product is given on the product,” says AK Chaturvedi ( KAUN KAREGA, YEH KARENGE? ), Joint Export Commissioner, UP, says, “So if a customer only buys GI tagged chikan (KYA NORMS BANAYE HAIN INHONE GI TAGGING KE LIYE? KAISE KARWAYENGE YE GI TAGGING ITNE MANUFACTURERS SE? ABHI TAK KAHAN THE? KURSI TODNE KE ALAWA KYA KIYA INHONE AB TAK? ), we can overcome the problem of duplicates available in market (BULLSHIT).”
So where can we get GI marked chikan? Nowhere! Because more than 10 years after Lucknow chikan registered for the GI mark, the process of issuing the GI mark to the artisans has not yet been completed (DEKHA, MAINE KAHA NA- KURSI TODNA HI SABSE BADA SARKAARI KAAM HAI). “We need to educate artisans about the benefits of GI mark (KAB?). The state government is also planning to issue artisan cards to genuine artisans (GENUINE ARTISAN KAUN HOTA HAI, PATA HAI? HOW WILL YOU DISTINGUISH BETWEEN A GENUINE ARTISAN AND A FRAUD?) and provide them loan by issuing credit cards (ISME KAUN SI BADI TOP CHALA DI AAPNE? BANK WALE TO GHAR GHAR JAAKAR CREDIT CARD BAANT-TE PHIR RAHE HAIN, IS SE INKA KYA BHALA HOGA? BANK WALON SE COMISSION ACCHA MIL SAKTA HAI, BAS.) so that they don’t face financial crunch in manufacturing (THERE IS NO FINANCIAL CRUNCH IN MANUFACTURING) good quality chikan,” adds Chaturvedi, while agreeing that the state needs to market Lucknow chikan much better (YEH HAI PATE KI BAAT, MAAL BANANA MUSHKIL BAAT NAHIN HAI KARIGARON KE LIYE, MAAL BIKNA BADI CHEEZ HAI).
“We also plan to curb the manufacturing of Lakhnawi chikan in cities other than Lucknow (WHEN?),” he adds. CHIKAN IS BEING MADE IN AND AROUND LUCKNOW ONLY. SO THIS POINT IS A WASTE OF TIME.

Good & Bad

Many friends of mine ask me the difference in good Chikan & bad Chikan. I wish to convey them that there is no such thing as bad Chikan. There are basically 3 types of Chikan, one for the masses, one for the classes and one for the pioneers.

Chikan for the masses is made by learners ie. girls who are learning or womenfolk who just want it to be done for the sake of earning the bread. The image below shows the best quality of this kind of Chikan, which when seen from a distance gives a good feeling that it is a piece made by hand, its delicate and it is famous. Many actresses (as I have posed in my earlier posts) know this as Chikan.When we see it from near (magnified in the image below here just 4X), it tells its tale itself. Let me again remind here that it is the best in its class.The other form which is for the classes is depicted here in the images below. The second image is also magnified 4X to show the comparision.

 

The third kind is sometimes a quality in between these two or more – less of the second kind. The difference between the 2nd and the 3rd kind is that the latter is created by the designers for special clientele  They usually don’t have that technical knowledge of all the processes that are involved in the making of Chikan and end up, in terms of quality, between the 1st and the 2nd type. These famed designers usually find their connoisseurs (read good pay masters) in larger cities specially Mumbai where they have to settle themselves to be available any time. The potential of Mumbai is well known to almost every Indian. It is a good point for them to get the raw materials, imported as well as locally made. It is a largest market place of India.
This is the plus as well as the minus point for them especially while designing with Chikan. Good quality Chikan needs checks at every process which is almost impossible to handle from 1400kms. distance. The case is fairly visible on Bollywood top actress Priyanka Chopra’s white and navy blue lehnga designed by designer Manish Malhotra. She wore it at Shabana Azmi’s Mizwan show. This quality can be said as in between the two mentioned above. It is made by almost all high class Chikan makers attempting it on pure georgette.
Some of the previous works of designer Abu Jani are really gems. I have not studied their new works from as near as I had the opportunity to access others’ works. They have till now closely guarded their works very efficiently. It were really them, copy of whose works is still giving bread to thousands in Lucknow.

 

 

The Times of India 5th Oct.2012′s Lucknow Times

 

Times of India in its Lucknow Times edition of 5th Oct 2012 revealed some of the very good and uncovered aspects of Lucknow which must find a place in this blog for the information of readers.
It covered areas like architecture, chikan and role of new artists in Indian cinema.
It displayed some fresh photographs by prominent photographers of Lucknow on its Bada Imambara. These well known photographers are Dr. Bhupesh C. Little,MrAnil Risal Singh. ,Mr.Ravi Kapoor & Mr.Ajaish Jaiswal This finds place in the paper by the title Picture perfect heritage The Bara Imambara continues to serve as the perfect backdrop for photographers looking to frame the city in all its Nawabi glory.

It says : If the Taj Mahal signifies never-ending love, Lucknow’s Bara Imambara is all about romanticism . . . while its architecture itself – a huge unsupported hall with beautifully adorned ceilings – inspires wonder, the very romantic history associated with it . . . and perhaps none can vouch for this fact better than photographers in the city, for whom the monument is a constant source of inspiration.

Ace photog Ravi Kapoor says “It’s been 30 years since I began photographing the Bara Imambara and I still find newer facets to take pictures of each time.” He adds “Frankly, there is no other structure in the world that can qualify as a comparative to the Bara Imambara . . . . the aesthetics are amazing, it is the world’s largest unsupported structure, which is a marvel of engineering. Also, the construction is not at all cluttered, there is freedom to move around and appreciate the beauty.”

Hotelier and photography enthusiast Ajaish Jaiswal is fascinated by how the Imambara is able to present different moods in the morning and the evening for a photographer.

And then, it is a living testimony of the glorious era of Nawabs, the tourists who come to Lucknow, especially the first timers, have heard of the city in very romantic terms and that romance is not really visible in the city due to the ever-floating population. But truly,the Bada Imambara is Lucknow’s treasure and Lucknowites need to respect and nurture this unique piece of art not only as their heritage but also for the progress of tourism.

 

 

Bollywood is known to be complemented by artists, specially from the field of literature, from Avadhi region over the years Be it Kaifi Azmi ji or Naushad ji or Rahi masoom Raza ji or Harivansh Rai Bacchan ji or Majrooh Sultanpuri jior Shakeel Badayuni ji or Jaan Nisar ji & Javed Akhtar ji or Amitabh Bacchan ji or Josh Malihabadi ji or Prasoon Joshi jior or Roshan Abbas ji or Vishal Bharadwaj ji to name a few.

This can be found in the newspaper as Lucknow ki boli, B’wood’s lingua franca?
Those in the Hindi film industry can’t stop waxing eloquent about Lucknow’s contribution to Indian cinema in the form of writers, singers and lyricists. Here’s why we should be proud of our lingual lineage.

Here the authors write praises about the language of Lucknow which is appraised of its nafasat bhari zubaan (manner in which it is said / spoken) and leheza (style in which it is spoken). Bollywoodians, especially those in the trade of penning scripts and songs, will firmly have you believe all the talk about Lucknow’s language is much more than a cliche.They end here saying a very good line “You see, the language here has a personality of its own.”

This language is not taken very seriously by the natives as they stay here and are giving and getting the same, its like ghar ki murgi daal barabar, but whenever they step out of this region, they long for this tehzeeb and mehmaan nawazi which is not found anywhere else. Its very much like the Queen’s way of speech, mannerism and courtesy.

 

The paper’s very experienced ( as I cannot edit a single word from her write ups ) journo Iti Shree Mishra who has made many aware of the royal form of hand embroidery known to the world as Chikan writes in her article titled CHIKAN OUT? NEVER!
Even while machine embroidery threatens the craft, chikan has made its place in India’s couture collections

Lucknow is about chikan and chikan is about Lucknow,” declared designer duo Abu Jani and Sandeep Khosla in an interview to LT some time ago. Even as we see cheap machine embroidered rip-offs of the original hand embroidered craft flood the market, chikan continues to fascinate those who have an eye for detail. “It’s those delicate patterns adorning the fabric that make chikan so timeless. People the world over love, wear and admire our chikan ensembles just as we love the art form. The beauty and appeal of chikankari is simply unbeatable,” says Abu Jani. “We all love everything that’s beautiful, and chikan embroidery is perhaps the best form of hand embroidery. That explains our love and passion for it,” adds Sandeep.
From the Bachchan parivar, Dimple Kapadia, Mukesh and Nita Ambani to international celebrities like Maggie Smith, Sophie Marceau and Sarah Brown – they have all proven over and over again that the art form remains unaffected by the vagaries of trends, as they opt for chikan ensembles for red carpet events.

 

 

In fact, Hollywood actor Dame Judi Dench has been wearing Abu-Sandeep designed chikan creations for several years now at award ceremonies like the Oscars and also the BAFTA. And early this year, she was seen dressed in a pale lilac chikan embroidered ensemble for the BAFTA awards in London. Aishwarya Rai Bachchan’s much anticipated presence in Cannes this year also saw her turning up in a cream chikan creation by the same designer duo.
Designer Manish Malhotra’s romance with chikan is also well known and the designer swears by the craft. According to Malhotra, “I have always liked to use Indian fabrics in my creations. My dresses are voluminous, glamorous and even my gowns are very Indianised. So, it makes sense to use Indian fabrics for them. And I think chikan embroidery is very elegant and beautiful.”
Designer Maheka Mirpuri, who says she is in love with the craft, adds, “Chikan is classic. It is perfect for summer because it has a very delicate feel.” Other fashion designers who have worked extensively in chikan are Ritu Kumar, whose love for the art has reflected in the ensembles she has created with chikan embroidery for Femina Miss Indias, over the years. Anita Dongre is also one of the designers whose preferred embroidery is chikan. Says Dongre, “Chikan work is timeless. You can wear it for both formal and informal occasions and looks stunning.” Designer Tarun Tahiliani is another designer who’s popularized the art and who also can be credited with starting the machine technique of chikan embroidery. Filmmaker Muzzafar Ali and wife Meera also dabble in chikan designer wear extensivley and initiated an elegant array of gold and silver chikankari work on black for formal wear.

 

KRISHNA is very thankful to wordpress.com as they now show in which parts of the globe our blog is being read the most. Its being read by people of and around India. Its because of it that this post of mine contains many hindi / urdu words and phrases / sayings / idioms.

IIM-L students give solutions for Chikan Industry

Management students from across the country arrived at Lucknow to participate in IIM-Lucknow’s annual enclave,Manfest 2012.As part of the enclaves flagship event The Next CEO,students interacted with people associated with Lucknow’s chikankari industry to understand the reasons why,despite huge domestic and international demand for the product,the chikankari market has been unable to capitalise and grow outside Lucknow. They interacted mainly with chikankari retailers and artisans and took stock of this industry’s situation. They reported lack of organised retail,focus-less marketing, poor understanding of consumer needs among others as some of the things affecting the chikan industry in Uttar Pradesh.
For the exercise,IIM-Lucknow tied up with three stores at Lucknows Janpath.After getting a brief introduction on chikan industry,students were split into teams of four and had to suggest strategic changes to shopkeepers and small enterprise owners so as to revive the dying art-form.
Though the workmanship was found to be of the finest quality,the time taken to produce the end product could,it was felt,render the product out of vogue by the time it hit the market.Workman also seemed to have no understanding of the demand.
The mantra they gave was innovate,implement and inspire to support the legacy already built.They took lessons from institutions and individuals who have persevered through tumultuous times to build a lasting legacy.”Creativity is the new driver,and India has some of the most creative people” said Devi Singh,director,IIMLucknow while the chief financial officer,Computational Research Labs,Shantaram Latkar said that innovations,not inventions,create wealth.He laid stress on the need for a pervasive culture of innovation,using anecdotes from Tata and Malcolm Balridge and added that innovation is the prerogative of many.
Focussing on the manufacturing sector,Seshadri Rajaram,CEO,Erhardt-Leimer,said innovation is anything that is done better,cheaper and faster;and transferred benefits to people.