Pashmina suffers identity crisis after years of trade

Pashmina suffers identity crisis after years of trade
eKantipur.com, 18-Jun-2007
POST REPORT

In a major blow, key pashmina importing countries, after accepting the product for years, have suddenly restricted its import demanding definition of the product.

Japan has barred import of pashmina items from Nepal from last week, saying that the products lack specific definition on content, texture and usage.

“As a result, the export of the product has come to a grinding halt from the last five days,” said Durga Bikram Thapa, general secretary of Nepal Pashmina Industries Association.

Likewise, Italy and Spain -- key markets of Nepali pashmina items in Europe -- have also warned of imposing ban on its import unless the manufacturers define the product.

“Both the countries have clearly said they will ban pashmina import from 2008 if Nepal failed to define it,” Thapa said.

Given the trend, exporters said the product, on which Nepal takes pride of enjoying a special advantage in the international market, could face similar problem in other European countries as well. Japan is the sixth largest importer of Nepali pashmina. Italy is also the third largest buyer among European countries.

The problem has added woes to the industry -- the third largest export industry of the country -- already suffering from a constant drop in exports over the years.

The problem emerged mainly because exporters from China, India and even Nepal have been exporting the items with widely varying quality and texture as 'pashmina' items, said Thapa.

It has come suddenly, but it is not unexpected, manufacturers said. Even though the manufacturers ever took pride over pashmina items carving a niche market, they never took serious initiatives to define and brand the items.

The product had faced hitch in past while seeking facility of Generalized System of Preference (GSP) in the European market.

Likewise, the industry had failed to secure its markets when Indian and other manufacturers marketed similar items under the name of pashmina.

So far, India's definition of Cashmere was widely accepted for the trade of pashmina and importers take the Nepali items as variation of the same category. As a result, the manufacturers and exporters, barring a few, never worked seriously to define and label the product.

“Now time has come for us to act urgently,” said Thapa Monday, seeking government's support in defining and branding the Nepali pashmina.

At an interaction program on “Export Sector Problems and Challenges”, he even suggested the carpet exporters to brand Nepali hand knotted woolen carpet.

Addressing the business community, acting Commerce Secretary Purushottam Ojha said that Ministry of Industry, Commerce and Supplies has presently assigned Department of Cottage and Small Industries to work on branding Nepali export items.

Businesspersons earlier sought the government to formulate a separate export policy to deal with the problems facing the sector. They even asked the government to contribute in export promotion, among others.