SALEM: Salem's traditional silver anklet manufacturing industry is facing a severe slowdown ahead of Deepavali, with manufacturers reporting a sharp fall in advance orders even as silver prices have eased from their earlier highs. With barely a month left for the festival, which usually brings a surge in demand, manufacturers say orders remain scarce, leaving both businesses and thousands of workers struggling for work.
Salem is home to around 10,000 silver anklet manufacturing units that provide livelihoods to more than 1.15 lakh people, including men and women employed in different stages of production. This year, however, manufacturers say orders have fallen to around a quarter of the usual level, making the festive season particularly difficult for the industry.
C Sri Anandarajan, president of the Salem District Kolusu Manufacturers Kaivinai Sangam, said manufacturers would typically begin receiving Deepavali orders nearly two months before the festival, allowing them to plan production and procure raw materials. This year, even with only a month remaining, there has been little demand from buyers.
"The quantity of silver used for anklet production during the Deepavali season has fallen sharply. In a normal year, manufacturers would receive orders requiring around 10,000 kg of silver, but this year the volume has dropped to less than 2,000 kg — a decline of more than 80%," he said.
Anandarajan said the fall in silver prices had also failed to revive demand. Although the price of silver had declined by more than Rs 30,000 per kg compared with January this year, manufacturers were still struggling to attract orders. "Even after the price came down, there has been no significant improvement in demand. We have not received the orders we would normally expect ahead of Deepavali," he said.
The slowdown has also affected orders from other states, which have traditionally been important markets for Salem's silver anklet manufacturers. Buyers from Andhra Pradesh, Maharashtra and Telangana usually place orders ahead of the festive season, but manufacturers said they had received little to no business from these markets this year. Even orders from jewellery shops have remained low.
The impact is being felt across the production chain, as making silver anklets involves several stages, each handled by workers specialising in particular tasks at different units. Many of these workers depend on daily wages and receive work based on the orders placed with manufacturers. With production slowing, a large number of them are now left without regular employment.
Manufacturers said Deepavali usually provides a much-needed boost to the industry, as the festival is celebrated across the country and demand for silver anklets typically rises during the period. This year, however, the festive season has offered little relief, despite being one of the industry's most important sales periods.
They also pointed out that the situation differs from last year's Deepavali season, when manufacturers faced difficulties because of a shortage of silver. This year, raw material availability is not the primary concern; instead, the lack of orders has left manufacturing units with little work to offer.
With demand remaining subdued despite the easing of silver prices, manufacturers fear that the prolonged slowdown could further affect their businesses and the livelihoods of workers who depend on Salem's traditional anklet-making industry.