Srinagar, Oct. 14 -- Mohammad Umar Kumar, a potter from Ishber Nishat, is working overtime to make earthen lamps (diyas). For the last few days, he has been witnessing an unprecedented surge in demand, with buyers making beelines at his home and workshop.

"In the last week alone, I have sold over 5,000 lamps, and I expect the demand to multiply as Diwali approaches," Kumar said. "Last year, the rush would come only in the last few days, but this year we are seeing bulk orders early. People are even visiting my home to choose and buy diyas."

Kumar, like many of his peers, is catering both to local buyers and to dealers who ship the lamps across India. As Diwali draws near, the humble earthen lamp-or diya-is lighting up business for local...