Rug dealers fear worst from attack backlash

NEW YORK - Long a mark of middle-class affluence and sophistication in America, rugs from Afghanistan, Pakistan and the Middle East are now piling up in stores unsold.

Whether part of a backlash against all things tinged with Arab and Islamic culture after the September 11 attacks, or a victim of economic slowdown, rug dealers in New York are worried about a serious sluggishness in their business.

They also worry that, as the most visible representatives of the Muslim world in mainstream America, they'll be the most likely to suffer from a backlash.

"We have seen a dramatic change in the last two weeks, it's unbelievable. Everyone keeps saying, 'Next week, next week'. Business is down 60 per cent," said Sekandar Hadaf, who works at Barat Farzaneh, a New York oriental rug dealer on Madison Ave near the Empire State building, in a neighbourhood considered the centre of America's rug industry.

Once concentrated in the homes of the wealthy, oriental rugs have become fashionable with the middle class as well, helped by the refined domesticity cultivated in magazines.

Wholesalers and retailers are worried that middle-class buyers swept up in the xenophobia of the moment could lose their fondness for the tapestried rugs. They are less worried about antique rugs held as investments, which can sell for six figures.

"The high-end business will be okay, but mediocre rugs from $US4000 ($9700) to $US8000 will get hurt. The middle-class will pull back, they may not feel emotionally able to buy rugs from Afghanistan or Iran," said Mohammad Rafatpanah, owner of Vintage Rugs, reiterating the thoughts of many of his peers.

Mr Rafatpanah, whose business is primarily wholesale, said some of his retail clients have reported instances of people returning rugs purchased just before the attacks. But he is unsure whether this is an emotional backlash or nervous New Yorkers seeking cash.

Distant events in Afghanistan, however, may complicate matters further. Some dealers predict the flood of Afghan refugees into Pakistan will saturate the carpet market as those desperate for food sell off their family heirlooms, and cheap Afghani carpets are dumped into Europe and the United States.

Coming on the back of price declines on carpets that followed the lifting of US sanctions against Iran, it's the last thing the desperate dealers need now.

"Since the end of the Iranian sanctions, the market has gone down. There has been a lot of competition between Afghan and Iranian rugs," said Sekandar Hadaf.

Whatever the long-term impact of the attacks, some antique rug dealers say they are relying on high-end collectors to see them through the year.

"These are pieces of art, and that's not dead," said Asshin Ansari, of Safavieh Rugs, an upmarket retailer.

"We sell rugs priced up to $US200,000, and recently we have started getting customers again."

But most dealers are placing their faith in the hands of the people.

"The President has said not every Arab, not every Muslim, is a terrorist. I don't think American citizens will look to cut off the livelihood of certain people from certain countries," said Michael Harounian, of Ebisons Harounian, another New York dealer.

One retailer, ABC Carpet & Home, took out a full-page advertisement in the New York Times to carry a plea for peace, written by Indian-born spiritualist Deepak Chopra.

"Can any military response make the slightest difference in the underlying cause. Is there not a deep wound at the heart of humanity? If there is a deep wound, doesn't it affect everyone?"

- REUTERS

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