Wilayat Ali, a Kashmiri carpet supplier, said his trading partner, who exports the carpets to the U.S., Germany and France, has already canceled at least a dozen orders already in the making.

Aziz Ul Rehman, a 25-year-old artist from Srinagar, has turned his passion for the natural world into a unique art form by creating intricate pieces from discarded animal bones and fallen wood. After ...