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This is an archive article published on November 29, 2010

80% Kullu shawls have ‘made in Ludhiana’ stamp

Five years ago,the Indian government and industry had cried hoarse when RiceTec,a US-based agro processing firm,had sought to patent basmati rice.

Breach GI norms; made by Ludhiana powerloom weavers with a mix of wool and cotton

Five years ago,the Indian government and industry had cried hoarse when RiceTec,a US-based agro processing firm,had sought to patent basmati rice. India had argued at the World Trade Organisation (WTO) forum that since the basmati variety was endemic to India and Pakistan,only these two countries could be allowed a patent it. This led to the Geographical Index (GI) under WTO’s Trade Related Intellectual Property Rights (TRIPS),which provides that only those who live in the designated geographical area and follow the specified process of making the unique product can use that patent.

But four years since the GI methodology was adapted,it is being contravened in Kullu valley. Kullu shawls have the GI index,but 80 per cent of the shawls that are sold here today under this name are not made here. Nor do they follow the specified production method. Under the GI norm,Kullu shawl is a handloom product,but the 80 per cent of the shawls sold as Kullu shawls are made in Ludhiana on powerlooms.

“At international forums,India pioneered the cause of GI identities to ensure that small traditional industries,which have their unique identity,are not wiped out by global competition. But unfortunately,our government is unable to protect us from the unscrupulous businessmen within the country who are misusing the brand name,” says B S Thakur,Managing Director,Bhutti Weavers Cooperative Society,the oldest and most reputed manufacturing unit of Kullu shawls. He says every Kullu shawl should be weaved on handloom with the original wool fabric and have a unique design pattern.

The counterfeits from Ludhiana ignore all these yardsticks. They make the product on powerloom,mix wool with cotton and are least bothered about authenticity of designs. “Compromising on these standards ensures that they save on time and cost. To make an average Kullu shawl,it takes around eight to ten months. The purity of fabric,design and effort ensures that price of a basic Kullu shawl starts from around Rs 4,000 onwards. But the factory made product in Ludhiana is sold at prices as low as Rs 800. The visiting tourists who know little about the product,happily buy these inferior and low priced product. But in the process brand is being diluted and more importantly,the industry gets a bad name in international markets,adversely affecting exports in long term,” says T R Kapoor,a consultant who works with the industry here.

The local handloom Kullu shawl industry right now employs 20,000 weavers,and the total annual turnover is around Rs 100 crore. The local industry allege that 80 per cent of this is cornered by what they term as “Ludhiana Mafia”,wherein shawls made in Ludhiana are transported to Kullu and sold there.

Shantanu Puri,a prominent corporate lawyer based in the region says,“There is definitely a remedy under the Intellectual Property Right series of laws. If GI is violated,the aggrieved party can first issue a public notice bringing the misuse to notice. If it is still not stopped,then an infringement suit can be filed in a court under whose jurisdiction the violator is working. In this case,an infringement suit can be filed in Ludhiana,by naming the specific manufacturers who are violating the law.”

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In fact,violation carries a heavy penalty that may include a fine of Rs 50,000 as well as imprisonment for six years.

The Kullu industry claims that it is too poor and small to engage in such legal wrangles with a powerful industry lobby. “Most weavers are poor and illiterate who cannot afford a battle against Ludhiana people who have powerful political connections. We only can expect succour from the government and we have made representations several times. We do not mind people from Ludhiana coming and selling their products here,but we just want that they should not be branding their products as Kullu shawls,” says Thakur.

The state government responded by setting up a watch body,which industry says has been ineffective. It comprises industry representatives. Baldev Garsanghi is a member and says,“Their nexus is very big. Some people of the local industry itself are involved. They have kept five-six handloom machines just for pretence,but in reality they are just selling powerloom shawls made in Ludhiana.”

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