Srinagar, April 28 -- The nearly two-month-long West Asia conflict has dealt a blow to Kashmir's carpet and handicraft sectors, with industry experts warning of a deeper crisis if tensions between the US and Iran intensify over the coming days. Stakeholders report a global drying up of orders, leading to a 40% decline in business. Sheikh Ashiq, member of the Carpet Export Promotion Council (CEPC) and former KCCI president, said on Monday that the situation was a direct fallout of regional instability. "Whenever war breaks out, our industry feels the impact immediately. Carpets and shawls are high-value products and in times of conflict, survival items take priority while luxury takes a backseat," he said. The crisis is not limited to a lack of demand; the cost of doing business has become unsustainable. Ashiq said that freight charges have surged by 400%, making it nearly impossible for importers to remain competitive. To prevent the total collapse of the artisan base, industry leaders are calling on the Jammu and Kashmir government to intervene. The proposal suggests the J&K Handicrafts Corporation begin direct procurement from weavers to ensure their survival until global markets stabilise. However, the J&K government has not taken any step as they are hopeful that with the betterment of situation, the market will improve again. The impact is being felt from Dubai showrooms to the looms of Srinagar. Major effected in Gulf is UAE, besides drop of demand on European countries. Tariq Ahmad, who operates showrooms in Dubai and Kashmir, has halted all sourcing. "We aren't getting orders, and even paying staff salaries has become difficult. I have cancelled all orders until the situation stabilises," he says. For weavers like Mohammad Shafi in Srinagar's Old City, the halt in trade is a threat to their livelihood. "Our products are 'peace products.' Conflict brings only misery for the artisans," he says. Kashmir exports between Rs.300 crore and Rs.500 crore worth of carpets annually to Europe, the Gulf, and the US. Despite the prestige of geographical indication (GI) tags for Kashmirisilk carpets, the industry remains vulnerable to geopolitical shifts. Exporters fear that even if a ceasefire between major powers is reached tomorrow, the hangover of the conflict will depress the luxury export market for several months, marking the most significant challenge to the sector since the Covid pandemic....