Market Instability and Social Shifts Cripple Salem’s Historic Silver Anklet Sector
Erratic silver bullion prices and shifting cultural norms are driving thousands of skilled artisans out of Salem's manufacturing units. Industry leaders warn that fluctuating raw material costs have slashed worker income and retail demand simultaneously.
A Traditional Industry Under Economic Strain
The silver anklet manufacturing sector in Salem district, a hub employing over 50,000 direct and indirect workers, faces a severe crisis driven by extreme bullion price swings. Over the past six months, these fluctuations have forced craftsmen to abandon their specialized trade for more stable employment. The manufacturing landscape, spread across clusters in Shevapet, Ponnammapet, Kondalampatti, and several other regions including Sivathapuram and Sooramangalam, consists of more than 1,000 functional units now operating at a fraction of their capacity.
Price Volatility and Production Paralysis
Data from the current year illustrates the dramatic shifts in the silver market. The price of silver bullion, which sat at ₹3.18 lakh per kg on January 1, surged to ₹4.05 lakh by the end of that month. Following a mid-year slump to ₹2.30 lakh in June, prices climbed back to ₹2.60 lakh in early July before settling at the current rate of ₹2.38 lakh. According to C. Sree Anandharajan, President of the Salem Silver Anklet Manufacturers’ Handicraft Welfare Association, this instability has devastated the order books for half a year.
- Labor impact: Artisans currently secure work only two to three times per week.
- Economic migration: Many specialists now treat anklet making as a part-time role, seeking primary income elsewhere.
- Vulnerability: Small and medium-sized manufacturers who rely on family labor are experiencing the most significant financial losses.
Changing Demographics and Reduced Retail Demand
Beyond the cost of raw materials, manufacturers highlight a shift in consumer behavior and institutional policies. P. Elango, a manufacturer based in Shevapet, notes that the retail market is shrinking due to changing trends. A notable factor includes school policies where administrators discourage female students from wearing anklets to prevent loss during physical activities. This cultural shift, combined with high price sensitivity at the retail level, has caused demand to fall sharply in recent years, leaving the future of Salem's traditional craft in a precarious state.
Source: The Hindu — News
