A DIVIDED HOUSE

Business groups in valley are the most affected by the two decades of turmoil in Kashmir. And at this point of time, the organizations representing these groups should have united to put their demands forward. But reverse is the case here.

 

Bilal Hussain

The political system prevalent in the valley has badly affected most of the business organizations in Jammu and Kashmir. And the result is obvious that it no more determines the context within which businesses should operate here. The political turmoil has created new business amalgamations that were supposed to oversee the affected industries in the valley. However; these new bodies ended up functioning more like government associates and are acting as puppets in the hands of the ruling politicians and the bureaucracy.

A change in policy mainly economic can have major effects on the local economy and on the firms that serve it. In the real senses the trade bodies should act as pressure groups to influence government and politicians for implementation of favourable economic policies in the state.

Their activities can also have a major impact on industries and individual firms. The government departments frequently consult pressure groups about new regulations and legislation. By consulting these groups, who already are working hand in glove with the government makes it easy for politicians to implement policies that are favorable for the establishment and at time it means choking businesses in the valley.

Over the years of interaction with the business organizations in the valley, I have observed that most of their constituents are capable and have handled their business well despite the political turmoil that has marred most of the economic activities here. However, when it comes to collective efforts they seem to have forgotten that 'united we stand, divided we fall'. At individual levels they are sound businessmen but the amalgamation of businesses have been utter failures.

Recent happenings that have left most of the trade organizations divided in the valley will have multiple long run implications on the economic activities overseen by these business bodies. For securing the undue favors from power corridors, self-interest-driven members have gone to an extent where they put credibility of the organization they belong to at stake, and they hardly care for it. This miscreant member’s pity self interests has ruined it all.

The Kashmir Chamber of Commerce and Industry, an apex and oldest business body of the valley, is the worst sufferer of dirty politics that has badly dented its credibility. In a recent development the High Court directed the chamber to defer its polls which were scheduled for September 22, 2011. In past too there have been lots of bad politics played which forced many of its old members to leave the chamber and form separate trade bodies. In no way this is justified, all they should have done is to be in the system and fight for the cause, if they were incapable then separate organizations makes no sense. It would be in the fitness of things for one and all if they all could come together and fortify the oldest business organization.

The divided trade bodies instead of serving the business are operating for the government, knowing or unknowingly. To counter and contain business organizations there is a parallel body that has been set here like: Travel Agents Association of Kashmir (TAAK) which has a parallel organization Travel Agents Society of Kashmir (TASK); Kashmir Hotel & Restaurant Association (KHARA) and then KHAROF - Kashmir Hotel And Restaurant Owners Federation. On similar patterns, there are business organizations like Kashmir Traders Manufacturers Association (KTMF), Kashmir Food Processing Association (KPFA), Kashmir Economic Alliance (KEA) Kashmir Chamber of Commerce and Industry (KCCI), Chamber of Commerce and Industries –Kashmir (CCIK), Federation Chamber of Industry Kashmir (FCIK) and many others.

The point is do we really need all these organization who almost have similar mandate and represents same trade sections. Isn't it that all business bodies should be merged in an apex business body with sub constituents to represent different sections of industry and trade? Easier said than done, I know it is not going to be cake walk at all but yes, if the stakeholders have to be in the business then they have to mean business.

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‘Strengthen trade links’ Kashmir Inc eyes Canada market

BILAL HUSSAIN

SRINAGAR, Apr 4: The apex business chamber of the valley, Kashmir Chamber of Commerce and Industries (KCCI), is mulling to strengthen business tie-ups with Canada. “We will approach Canadian chamber for their support to promote Kashmir products in Canada,” president, KCCI, Nazir Ahmad Dar said.
At present there are almost non-existent trade links between Canada and Kashmir. The KCCI in a step forward has invited some Canadian delegates to the Valley. “We have sent invitation to good number of Canadians and so far have received decent response,” Dar adds.
Director, Kanwal Foods and Spices (I) Pvt. Ltd. —spices manufacturers having global presence— Farooq Amin told Kashmir Times that they do have once sent a consignment to Canada. “Since then we have too many enquire from Canada. Canadians take lots of non-vegetarian so we do have lots of potential there at. We are planning to expand to Canada as there is huge market for the species which we can cater,” Amin adds.
The Kanwal Foods and Spice is planning to export Wazwan to Canada but due to little shelf-life it is yet to happen. “We are working on it and expect to increase shelf-life of Wazwan by one year then we will export it to Canada,” he adds.
According to Amin the government should pro-actively promote Kashmir products including handicraft products to the foreign countries that will boost the local economy. “Our products can compete at international markets provided we ensure quality. All we have to do is raise aware¬ness level among the business community here,” he believes.
While, Nazir Ahmad Dar said that the KCCI would provide all possible support and help to entrepreneurs and the existing business houses here so that they would export their products to Canada. “Government too should join us in this endeavor. Promotion of trade ties with Canada to some extent can address unemployment problems of the state,”
he mentions.
President KCCI considers that the business persons and young entrepreneurs from the state should participate in the buyer and seller meet in Canada. “Government should support such initiatives,” he states.
To mention, Indian exports to Canada include readymade garments, textiles, cotton yarn, carpets, gem and jewellery and precious stones, organic chemicals, coffee, spices, light engineering goods, iron and steel articles, footwear and leather products. Some major Imports from Canada include newsprint, wood pulp, asbestos, potash, peas, iron scrap, copper, minerals, and industrial chemicals.

KCCI, CCIJ to work together

Chambers for enhancing intra-trade ties between Kashmir, Jammu

BILAL HUSSAIN

The president’s of Kashmir chamber of Commerce and Industry (KCCI) and Chamber of Commerce and Industry Jammu (CCIJ) on Sunday in a meeting resolved to work together on common issues confronting both regions of the state which are expected to enhance intra-trade ties between Kashmir and Jammu.
President KCCI, Nazir Ahmad Dar told Kashmir Times that the communication between two chambers would further be improved, which would increase trade between the business communities of two regions of the state.
The Jammu chamber and KCCI would both work on facilitating the trans-LoC (Line of Control) trade. Both of them stressed that there is dire need to put in place the proper infrastructure which includes banking and communication facilities, multi-entry permits for traders and inclusion of demand driven products.
“There is a need of proper banking system to convert the present barter trade system to the regular trade and in this regard, we would recommend that the JK Bank Limited be permitted to open a branch in Muzafarabad,” Dar said.
The second suggestion by the KCCI advocates allowing a trade delegation from Kashmir to visit to Pakistan administered Kashmir.
The Chamber of Commerce and Industry Jammu (CCIJ), President, Y V Sharma said, “We would together impress upon the government to smoothen the LoC trade. We would work together on a long term plan to make it a success”.
The trader’s body also seeks exchange of trade delegations on regular basis to know each others requirements for trading. “Movement between the two parts of Kashmir for trade activity should be hassle free. The trade in the present form is not effective,” Dar said.
Besides, traders demand that the 21 items approved by the government for trading need should be enhanced from out of the lists initially sent to the government by the trade organizations of the two parts of Kashmir. “The banning of few items like Zeera, Aijwani and other items being aromatic medicinal and herbal in nature used as medicinal and food items be reviewed.”
Earlier, Salamabad Chakoti LoC Trade Union, a local trade body, has demanded immediate ban lift on certain commodity items. According to the trade union due to the ban on few commodities the traders are continuously suffering losses. “We want an immediate revocation of the ban,” they had said.
The ban is on the Ginger, Kismish, Pista Doodi, Dates, and layson. The union believes that the ban on the commodities, which are highly in the demand over here should be lifted to benefit traders. The list in no way corresponds to market realities, said a trader.
To mention, the much hyped trans-LoC (Line of Control) trade has not gone beyond Rs 45 crore annually.
Earlier KCCI had proposed with the JK Bank, only company from J&K listed on stock exchanges of India, to open a branch in AJK.
Mention to be made, JK Bank prior to partition in 1947 had two branches in AJK, one in Mirpur and other in Muzaffarabad. President KCCI is also of the opinion that it would be for the betterment of the trade if the J&K Bank is allowed to reopen its branches in other side of the LoC.

KCCI envisions Kashmir-Iran joint business council

BILAL HUSSAIN

Srinagar: Thinking global the Kashmir Chamber of Commerce and Industry has reached an understanding with the Iran Chamber of Commerce, Industries and Mines to "institutionalize interaction between the two chambers" and explore possibility of having a joint business council.
President KCCI Dr Mubeen Shah told Greater Kashmir on phone that the Iranian chamber will be sending a draft memorandum of understanding through which the interaction between both the chambers will be institutionalized and once trade starts the possibility of having a joint business council will be explored.
To mention a chamber delegation headed by its president and among others joined by R A Quadri, director, handicrafts, J&K was in Iran from July 17 to 29, "to study the handicraft and carpet industry and explore possibility of having interaction with the trade bodies."
Dr Shah said the KCCI delegation had a detailed meeting with the representative of the Iranian chamber headed by Abdolreza R Hanjani, Director General. Among the participants were also members of the Iran-India business council.
Giving details Dr Shah said the Iranian side was apprised about the economic potential of Kashmir and the possibility of having trade with Kashmir once the LoC trade started through the land route. "We apprised them about the possibility of close interaction between the institutions like IICT and CDI in Kashmir and similar institutions in Iran," he said.
"The possibility of having tourists from Iran as well as the possibility of investment in power, potential industries like minerals and mines, horticulture was also discussed," he said. "The Iranian side while welcoming the initiative of the KCCI appraised the delegation of the possibility of trade between Kashmir and Iran which will need regular interaction between the two chambers," he said.
On a subsequent meeting held with some members the possibility of investing in the development of magnetite and bauxite deposits which Kashmir has and have not been exploited yet was discussed with an Iranian company offering to set up a joint venture in Kashmir in this regard once "we are able to apprise them the procedure and other details," he said.
"The possibility of having close interaction with the Iranian ministry of commerce in regard to exchange of artisans as well as designers in carpet manufacturing was offered by the representative of the ministry Ali Malaki Jou in the meeting," he said. "The possibility of joint marketing of saffron was also discussed and interaction with respective traders and growers will be explored by both the chambers." In regard to horticulture the Iranian side offered to help Kashmir growers and traders to gain experience in production and processing. It may be noted that Iran produces almost all the fruits which Kashmir produces.
The possibility of export of fine textiles like shawls needs interaction between individual companies and the Iranian chamber will communicate to their members. The delegations also discussed the possibility of export from Kashmir. "There is a strong possibility of cumin and spices exports to Iran and this could be explored," Dr Shah said.
The KCCI delegation also had a meeting with the Iranian Carpet Exporters' Association. "We were apprised by our Iranian counterparts about the present state of the carpet industry in Iran," he said. To mention carpets are the second biggest exports of Iran after oil and gas.
The delegation also met managing director of Iran Carpet Company along with his executives which is a government organization with 24 branches within Iran and is a production as well as marketing company for carpets in the government sector. The KCCI was invited to participate in the next international carpet exhibition in Kish Island.
The KCCI delegation also had a meeting with the office bearers of Isfahan Chamber of Commerce, Industries and Mines headed by their president M Eslamian.
The Isfahan chamber appraised the delegation that Isfahan is the second biggest city in Iran as well as the second largest industrial centre in Iran and is also called the art capital of Iran. "They were very enthusiastic about tourism to Kashmir and requested for more details in regard to investment opportunities in the industrial sector," he said.
"The two chambers – KCCI and Isfahan Chamber of Commerce, Industries and Mines – signed a memorandum of understanding for a period of two years in the first instance to explore avenues and possibilities for the trade between Kashmir and Iran," he said.
He said: "The visit to Iran was an eye opener for the KCCI delegation which felt that there is not only potential for trade between Iran and Kashmir but also a dire need for close interaction between the trading communities of Kashmir and Iran and particularly between those who are in the carpet and handicraft industry."
"The KCCI delegation is optimistic that if the practice followed by the Iranian carpet industry is followed by Kashmiri manufacturers and traders also, it will go a long way to make our carpet industry better," Dr Shah said.