Bhopal, March 20 The conflict in West Asia has severely impacted the exporters of traditional 'itra' perfumes in Madhya Pradesh, with large orders being cancelled and the supply of glass bottles being affected.
"The situation is dire, as the cancellation of export orders has led to a build-up of inventory. Demand is usually high during the holy month of Ramadan, but we are facing a major loss this time," said Syed Mohammad Altmash Jalal of House of Hairat Perfumes, speaking to
Natural perfumes like rose and 'oud' from Kannauj are in high demand in foreign markets during this season, but the ongoing conflict between the US, Israel, and Iran has severely affected business, he said.
"We are also facing rising prices for perfume glass bottles, which are manufactured in Gujarat. These factories rely on gas (LPG) for fuel, but it is not readily available at the moment," Jalal added.
The shortage of glass bottles, which is "the most important" part of the 'itra' business, is likely to create serious problems in the coming days if the situation persists, he said.
Most of the manufacturing units where they procure 'itra' and other perfumes are located in Kannauj, Uttar Pradesh, Jalal said.
Another challenge for perfume exporters is the falling rupee against the US dollar (at Rs 92-93 as of Friday), which increases the cost of raw materials, including bottles purchased from foreign countries like China, he said.
Abdul Mughis Faruqui of Newman Associates, who has roots in Kannauj and has launched his own perfume brand 'Orrisca', said, "If the situation persists for a long time, it will definitely hit my startup hard, as we are in the final stages of launching our ethnic product."
Shailendra Pathak of Shivam Formulations, a manufacturer of air fresheners and body perfumes based in Indore, said there will be a more serious problem if there is a shortage of raw materials, which could happen if the situation in West Asia does not return to normal soon.