Govt prepares to ask India for 2nd transit point
eKantipur.com, 22-Aug-2007
BY MILAN MANI SHARMA
The government has initiated exercises for securing Mumbai, India's commercial capital, as Nepal's second transit point.
The exercises were started after India agreed in principle, but sought rationale, for allowing Nepal to use the Jawaharlal Nehru port in Mumbai for third country trade.
In the first among a series of exercises, the government has assigned the UN Trade Related Capacity Building Project to conduct a detailed study to ascertain the volume of export traffic, economic benefits and possible modalities for cargo movement, said Purushottam Ojha, acting secretary of the Ministry of Industry, Commerce and Supplies.
Talking to the Post, Javed Ashraff, economic counselor at the Indian Embassy in Kathmandu, said that India has already agreed to let Nepal to use Mumbai as Nepal's second transit point.
“We have sought a projection of cargo volume and other details from the Nepal government,” said he. Formal negotiations over the issue will begin once two sides exchange views on the proposal to be submitted by Nepal.
As of date, Nepal uses Kolkata as the only transit point to link its trade with third countries.
Nepal had first requested India to provide it with the second transit in 1995. A formal request to it was placed only in September 2004, when the then Prime Minister Sher Bahadur Deuba made an official trip to New Delhi.
According to officials, Nepal pushed for transit facility at JN port due mainly to its geographic location and efficiency.
An assessment done in 1995 had estimated that the use of JN port could reduce the transit/transportation cost of west-bound cargo by up to 40 percent and freight cost by US$ 200 per container compared to shipment from Kolkata.
However, the assessment had not calculated how it would impact cost of inland cargo movement. The distance of JN port from Birgunj is about 1,500 kilometers, whereas Birgunj is 700 km away from Kolkata.
Freight forwarders said that overall cost of doing trade with US and Europe would be cheaper from JN port than from Kolkata.
They mainly cited four reasons for it: i) cost of freight from JN port will be 40 percent cheaper than Kolkata, ii) days of shipment from JN port will go down by about 20 days, iii) cargo segregation for different destinations can be done in Mumbai, and iv) private sector-operated JN port is much more efficient than the trust-managed Kolkata port.
“If arrangements are made for ferrying cargoes on train from Birgunj, costs of transportation up to Mumbai will also not be that high,” said Namgyal Lama, president of Nepal Freight Forwarders Association.
Importers such as Akhil Chapagain said that real economic benefits can be ascertained only when costs are compared from Birgunj to destination ports. He cautioned that benefit would also depend on the modality of transit and cargo operations.
Showing posts with label Trade. Show all posts
Showing posts with label Trade. Show all posts
Monday, September 03, 2007
Signs of revival in handicraft export
Signs of revival in handicraft export
eKantipur.com, 4-Jul-2007
As a dim indication of revival of handicraft exports, the declining trend of handicraft exports has slowed down in the past two months, reveals the statistics of Federation of Handicraft Associations of Nepal (FHAN).
According to the figures, cumulative handicraft exports during the 10th and 11th months of the fiscal year went down by 1.8 percent, whereas its exports had gone down by 4.65 percent till the ninth month.
Total exports during the first 11 months remained lower than that recorded during the same period last year.
FHAN's figure shows handicraft items worth Rs 2.43 billion were exported during the period, while the same was Rs 2.54 billion in same period last fiscal year.
The slump in the export of pashmina products, metal craft and handmade paper, which together make 41 percent of all handicraft exports from Nepal, is largely attributed for the fall.
Things still look bad for pashmina products, which make up nearly 19 percent of the total handicraft exports.
A total of Rs 448.62 million worth of pashmina products were exported in the 11 months of this fiscal year. It is a drop of 19.04 percent compared to the export recorded during the same period last year. The country had exported pashmina worth of over Rs 5.6 billion six years ago.
FHAN officials said pashmina export suffered mostly from tough competition exerted by similar Chinese and Indian products. Nepali entrepreneurs' inability to adapt to the new market trends, develop new products and failure to maintain a standard of quality contributed to the loss of market.
The industry had also received a setback recently when Japan stopped exports from five companies and started verifying them for authenticity. Apart from Japan, other countries like Italy and Spain have also called pashmina entrepreneurs to define the products.
Export of metal craft also declined by about 10 percent to Rs 349.12 million during the period. Export of handmade paper products also slid by 5.96 percent to Rs 218.29 million.
The export of woolen goods plummeted by 27.36 percent during the period.
According to FHAN, Rs 571.48 million worth of woolen goods and felt products were exported in the first 11 months of the 2005/06 fiscal year while in the same period this year Rs 415.13 million worth of woolen goods and Rs 185.92 million worth of felt products were exported bringing the combined export to Rs 601.07 million.
Cotton goods, allo goods, other textile products, silver jewelry, leather goods, incense, thanka art, ceramics products, bone and horn products, plastic items and stone craft saw improvement in export this year.
These products brought in foreign currency equal to Rs 567.78 million in the first 11 months of this year, compared to Rs 517.08 million in the same period last year.
eKantipur.com, 4-Jul-2007
As a dim indication of revival of handicraft exports, the declining trend of handicraft exports has slowed down in the past two months, reveals the statistics of Federation of Handicraft Associations of Nepal (FHAN).
According to the figures, cumulative handicraft exports during the 10th and 11th months of the fiscal year went down by 1.8 percent, whereas its exports had gone down by 4.65 percent till the ninth month.
Total exports during the first 11 months remained lower than that recorded during the same period last year.
FHAN's figure shows handicraft items worth Rs 2.43 billion were exported during the period, while the same was Rs 2.54 billion in same period last fiscal year.
The slump in the export of pashmina products, metal craft and handmade paper, which together make 41 percent of all handicraft exports from Nepal, is largely attributed for the fall.
Things still look bad for pashmina products, which make up nearly 19 percent of the total handicraft exports.
A total of Rs 448.62 million worth of pashmina products were exported in the 11 months of this fiscal year. It is a drop of 19.04 percent compared to the export recorded during the same period last year. The country had exported pashmina worth of over Rs 5.6 billion six years ago.
FHAN officials said pashmina export suffered mostly from tough competition exerted by similar Chinese and Indian products. Nepali entrepreneurs' inability to adapt to the new market trends, develop new products and failure to maintain a standard of quality contributed to the loss of market.
The industry had also received a setback recently when Japan stopped exports from five companies and started verifying them for authenticity. Apart from Japan, other countries like Italy and Spain have also called pashmina entrepreneurs to define the products.
Export of metal craft also declined by about 10 percent to Rs 349.12 million during the period. Export of handmade paper products also slid by 5.96 percent to Rs 218.29 million.
The export of woolen goods plummeted by 27.36 percent during the period.
According to FHAN, Rs 571.48 million worth of woolen goods and felt products were exported in the first 11 months of the 2005/06 fiscal year while in the same period this year Rs 415.13 million worth of woolen goods and Rs 185.92 million worth of felt products were exported bringing the combined export to Rs 601.07 million.
Cotton goods, allo goods, other textile products, silver jewelry, leather goods, incense, thanka art, ceramics products, bone and horn products, plastic items and stone craft saw improvement in export this year.
These products brought in foreign currency equal to Rs 567.78 million in the first 11 months of this year, compared to Rs 517.08 million in the same period last year.
Wednesday, July 04, 2007
35% demand met by domestic drugs
35% demand met by domestic drugs
eKantipur.com, 27-Jun-07
Nepal is quite good at producing antibiotics though a high amount of drugs is imported in the country, a report said.
According to a study on "Consumption of antibiotics and other medicines" carried out by Department of Drug Administration (DDA), 35 percent of the total consumption in the country is met through domestic industries. The antibiotic amoxicillin is the top selling drug of the domestic industries. Pharmaceutical Horizon of Nepal (PHON) prepared the report for DDA.
The study carried out during the fiscal year 2005/006 in several cities like Kathmandu, Bhairahawa, Birgunj, Biratnagar, Lalitpur and Bhaktapur, among others was released here Wednesday. It said that about 30 percent of total consumption of drugs is covered by antibiotics. Allopathic drugs worth Rs 4.99 billion in retail value were sold through private importers. Ayurvedic/Unani drugs worth Rs 347 million, veterinary drugs worth Rs 201 million and homeopathic drugs worth Rs 4 million were sold through private importers.
Similarly, the total value of drugs imported through Government, UN agencies, INGO's/ NGO's was Rs 889 million. Allopathic drugs worth Rs 3.18 billion in retail value were sold from domestic industries. Ayurvedic/Unani drugs worth Rs 247 million and veterinary drugs worth Rs 121 million in retail value were sold from domestic industries.
The value of drugs imported through different custom points was Rs 5.1 million.
"This study has helped estimate the national consumption of medicines, which will serve as a basis for planning an effective drug management as well as for making self-reliant drug production through the national industries," said Bhupendra Bahadur Thapa, director of DDA.
eKantipur.com, 27-Jun-07
Nepal is quite good at producing antibiotics though a high amount of drugs is imported in the country, a report said.
According to a study on "Consumption of antibiotics and other medicines" carried out by Department of Drug Administration (DDA), 35 percent of the total consumption in the country is met through domestic industries. The antibiotic amoxicillin is the top selling drug of the domestic industries. Pharmaceutical Horizon of Nepal (PHON) prepared the report for DDA.
The study carried out during the fiscal year 2005/006 in several cities like Kathmandu, Bhairahawa, Birgunj, Biratnagar, Lalitpur and Bhaktapur, among others was released here Wednesday. It said that about 30 percent of total consumption of drugs is covered by antibiotics. Allopathic drugs worth Rs 4.99 billion in retail value were sold through private importers. Ayurvedic/Unani drugs worth Rs 347 million, veterinary drugs worth Rs 201 million and homeopathic drugs worth Rs 4 million were sold through private importers.
Similarly, the total value of drugs imported through Government, UN agencies, INGO's/ NGO's was Rs 889 million. Allopathic drugs worth Rs 3.18 billion in retail value were sold from domestic industries. Ayurvedic/Unani drugs worth Rs 247 million and veterinary drugs worth Rs 121 million in retail value were sold from domestic industries.
The value of drugs imported through different custom points was Rs 5.1 million.
"This study has helped estimate the national consumption of medicines, which will serve as a basis for planning an effective drug management as well as for making self-reliant drug production through the national industries," said Bhupendra Bahadur Thapa, director of DDA.
Sunday, June 24, 2007
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.
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.
Saturday, June 09, 2007
Garment export falls to 60 percent in May
Garment export falls to 60 percent in May
Nepalbiznews.com, 7-Jun-2007
Fall in the export of Nepali readymade garments to the United States, the single largest market to Nepali apparel, is continued for the month of May with massive decline of 60 percent.
It is the fifth consecutive month this year that export of Nepali textile and apparel products lost ground. Garment exports to the US has been suffering from the very beginning of the year, witnessing a whopping decline of 54 per cent in January, 64 per cent in February, 47 per cent in March and three per cent in April.
The industry is in doldrums for the last couple of years, following the termination of quota regime under multi-fibre arrangement (MFA) in January 2005.
Exports had suffered a loss of 30 per cent in 2004 and rose to 41 per cent in 2005. However, it slowed down with a marginal drop of six per cent in 2006. As the US alone absorbs more than 80 per cent of the total Nepali garment exports, the single market concentration is blamed for such a plummet.
Garment and apparel products valued at over $2.25 million were exported to the US on May 2007, whereas garment products worth over $5.60 million were exported last year, reveals figures provided by the Garment Association of Nepal (GAN), Wednesday.
Continuous fall in exports indicates a difficult time ahead for Nepali garment manufacturers and exporters, as markets have already been opened for all competitors without quota restrictions, an exporter said.
He urged for enhancing the competitive strength of Nepali products to compete with big suppliers from India and China and other strong players like Bangladesh and Pakistan.
According to quantitative analysis, altogether 2152 kg of the commodity were exported during the month, whereas the figure for May 2006 stood at 11714.8 kg.
Besides building up competitive strength, diversification of markets and products has remained a major challenge.
Nepalbiznews.com, 7-Jun-2007
Fall in the export of Nepali readymade garments to the United States, the single largest market to Nepali apparel, is continued for the month of May with massive decline of 60 percent.
It is the fifth consecutive month this year that export of Nepali textile and apparel products lost ground. Garment exports to the US has been suffering from the very beginning of the year, witnessing a whopping decline of 54 per cent in January, 64 per cent in February, 47 per cent in March and three per cent in April.
The industry is in doldrums for the last couple of years, following the termination of quota regime under multi-fibre arrangement (MFA) in January 2005.
Exports had suffered a loss of 30 per cent in 2004 and rose to 41 per cent in 2005. However, it slowed down with a marginal drop of six per cent in 2006. As the US alone absorbs more than 80 per cent of the total Nepali garment exports, the single market concentration is blamed for such a plummet.
Garment and apparel products valued at over $2.25 million were exported to the US on May 2007, whereas garment products worth over $5.60 million were exported last year, reveals figures provided by the Garment Association of Nepal (GAN), Wednesday.
Continuous fall in exports indicates a difficult time ahead for Nepali garment manufacturers and exporters, as markets have already been opened for all competitors without quota restrictions, an exporter said.
He urged for enhancing the competitive strength of Nepali products to compete with big suppliers from India and China and other strong players like Bangladesh and Pakistan.
According to quantitative analysis, altogether 2152 kg of the commodity were exported during the month, whereas the figure for May 2006 stood at 11714.8 kg.
Besides building up competitive strength, diversification of markets and products has remained a major challenge.
Garment production shifting overseas
Garment production shifting overseas
eKantipur.com, 28-May-2007
BY MILAN MANI SHARMA
Citing fragile security situation as one of the main obstacles for industrial operation, some half a dozen leading garment manufacturers have shifted their manufacturing base to foreign lands to retain their main clients.
The manufacturers that have pulled down the shutters due to labor strike have entered in a manufacturing deal with Indian, Sri Lankan and Vietnamese factories and are fulfilling their orders from there, an official of Garment Association - Nepal (GAN) said.
“Volume of such export is estimated to stand close to one-fifth of the export made through factories in Nepal,” said the source.
If GAN's estimates mean anything, then the figure of export through such overseas bases goes more than US$ 500,000. Moreover, such shifting of base has gobbled up jobs of some 3,000 Nepali workers.
Labor stir and industrial insecurity, besides eroding competitiveness have badly hit the Nepali readymade garment industry, reducing the employment in the industry down to 15,000 from 30,000 over the last couple of year.
“Incoming of those diverted production could have generated employment for thousands, but the fact is: it is the labor stalemate that has resulted in such an action,” GAN president, Kiran Saakha told the Post.
Entrepreneurs, however, preferred not to discuss about it openly lest that might attract authorities' attention -- as the act can be interpreted as investing overseas, which is prohibited by laws -- and draw trade unions' ire. Concerned government officials expressed their awareness on the matter. “But rather than addressing the problem that has caused people to lose jobs, they have prefer to maintain silence,” charged Saakha.
The saga of shifting the base started when labor stir forced some half a dozen companies, including leading ones, to pull down their shutters last year; and over a month-long terai unrest this year posed a threat to exporters of losing clients due to failure in meeting delivery schedule.
Such a situation mainly threatened entrepreneurs of losing orders permanently, said Uday Raj Pandey, general secretary of GAN, adding “In such a situation, there was no alternative but to fulfill orders by requesting manufacturers outside the country to help.”
Proprietor of Sirin Garment, Pandey accepted he himself fulfilled the delivery order by tying up the manufacturing deal with a party in India. “Since the situation in the industry still remains bad, the trend has come to stay,” he stated.
“Ours is a long-term business deal. No exporter wishes to lose his buyer, especially when rising competition has rendered buyers difficult to come by,” said an entrepreneur who has tied up the manufacturing deal with an Indian manufacturer in Hyderabad.
He said his decision to shifting the base and hammering out a deal with factories outside the country was not easy. “The hassle is too much and we also have to compromise on profit margin,” said he.
Given the situation, Pandey said that general mindset of such manufacturers was to resume manufacturing the orders from their own factory in Nepal.
However, amid latest ultimatum of trade unions to absorb all the workers and hike wages, which they fear would ignite fresh round of labor stir, manufacturers said they seriously doubt their chances of meeting delivery deadline yet again.
eKantipur.com, 28-May-2007
BY MILAN MANI SHARMA
Citing fragile security situation as one of the main obstacles for industrial operation, some half a dozen leading garment manufacturers have shifted their manufacturing base to foreign lands to retain their main clients.
The manufacturers that have pulled down the shutters due to labor strike have entered in a manufacturing deal with Indian, Sri Lankan and Vietnamese factories and are fulfilling their orders from there, an official of Garment Association - Nepal (GAN) said.
“Volume of such export is estimated to stand close to one-fifth of the export made through factories in Nepal,” said the source.
If GAN's estimates mean anything, then the figure of export through such overseas bases goes more than US$ 500,000. Moreover, such shifting of base has gobbled up jobs of some 3,000 Nepali workers.
Labor stir and industrial insecurity, besides eroding competitiveness have badly hit the Nepali readymade garment industry, reducing the employment in the industry down to 15,000 from 30,000 over the last couple of year.
“Incoming of those diverted production could have generated employment for thousands, but the fact is: it is the labor stalemate that has resulted in such an action,” GAN president, Kiran Saakha told the Post.
Entrepreneurs, however, preferred not to discuss about it openly lest that might attract authorities' attention -- as the act can be interpreted as investing overseas, which is prohibited by laws -- and draw trade unions' ire. Concerned government officials expressed their awareness on the matter. “But rather than addressing the problem that has caused people to lose jobs, they have prefer to maintain silence,” charged Saakha.
The saga of shifting the base started when labor stir forced some half a dozen companies, including leading ones, to pull down their shutters last year; and over a month-long terai unrest this year posed a threat to exporters of losing clients due to failure in meeting delivery schedule.
Such a situation mainly threatened entrepreneurs of losing orders permanently, said Uday Raj Pandey, general secretary of GAN, adding “In such a situation, there was no alternative but to fulfill orders by requesting manufacturers outside the country to help.”
Proprietor of Sirin Garment, Pandey accepted he himself fulfilled the delivery order by tying up the manufacturing deal with a party in India. “Since the situation in the industry still remains bad, the trend has come to stay,” he stated.
“Ours is a long-term business deal. No exporter wishes to lose his buyer, especially when rising competition has rendered buyers difficult to come by,” said an entrepreneur who has tied up the manufacturing deal with an Indian manufacturer in Hyderabad.
He said his decision to shifting the base and hammering out a deal with factories outside the country was not easy. “The hassle is too much and we also have to compromise on profit margin,” said he.
Given the situation, Pandey said that general mindset of such manufacturers was to resume manufacturing the orders from their own factory in Nepal.
However, amid latest ultimatum of trade unions to absorb all the workers and hike wages, which they fear would ignite fresh round of labor stir, manufacturers said they seriously doubt their chances of meeting delivery deadline yet again.
Saturday, April 28, 2007
Carpet export dips by 3.05 percent
Carpet export dips by 3.05 percent
eKantipur.com, 23-April-2007
By Tapas Barsimha Thapa
Woes for the Nepali carpet industry continues, as the export of hand-knotted woolen carpet went down by 3.05 percent during the first nine months of current fiscal year, compared to the same period last year.
According to the data compiled by Trade and Export Promotion Center (TEPC), a total 976,782.08 square meters of the woolen carpet was exported to more than 48 different countries and the quantity was 13.69 percent less than what was exported during the same period last year.
Along with the fall in the quantity of export, total earnings from export also witnessed a decline of 3.05 percent to US$ 56.09 million as against US$ 57.85 million seen last year. But things could be getting better slowly.
Amid slowly improving business environment, knowledgeable carpet traders said that the fresh flurry of delivery of backlogged products has pushed up export figures.
Export in the mid-March-April of 2006/07 increased by 13.69 percent to stand at US$ 7.2 million compared to exports during same period last year, when it was US$ 6.3 million.
Kabindra Nath Thakur, president of Nepal Carpet Exporters Association (NCEA) attributed the rise to the end of terai unrest and decrease in strikes, chakkajams and bandas. “That helped in delivery of products, which were supposed to be delivered in the previous months,” said he.
This is evident considering that the export figure in the ninth month of this fiscal year was 42.32 percent more than that in the eighth month. The monthly export in the period between mid-December 2006 and March 2007 stood at around the five million US dollar mark owing to the general and labor strikes in the industry.
Thakur, however, warned that the recent increase should not be taken too positively, as the overall picture of export of hand-knotted woolen carpet is still dismal.
“The labor problem that mired the industry is almost resolved. If peace persisted, we can produce and deliver carpets in time. But don't expect too much good news. A lot of other factors have increased the cost of production,” he said.
He informed that a settlement with the labor unions to end labor strike has added five to ten US dollars to the current cost of producing per square meter of carpet. The cost of processing, wool and other factors of production has also gone up.
This has added some seven to seventeen US dollars to the current rate for the finished products. Another factor affecting the market is the sharp decline in the value of the US dollar.
Thakur said that the government's apathy toward the industry, which is Nepal's biggest foreign currency earning export, still continues pushing clients toward neighboring India.
According to Thakur, 1,484,484.42 square meters of carpets were exported in 2005/06 fiscal year, while exports would not even cross the 1.2 million mark this fiscal year.
eKantipur.com, 23-April-2007
By Tapas Barsimha Thapa
Woes for the Nepali carpet industry continues, as the export of hand-knotted woolen carpet went down by 3.05 percent during the first nine months of current fiscal year, compared to the same period last year.
According to the data compiled by Trade and Export Promotion Center (TEPC), a total 976,782.08 square meters of the woolen carpet was exported to more than 48 different countries and the quantity was 13.69 percent less than what was exported during the same period last year.
Along with the fall in the quantity of export, total earnings from export also witnessed a decline of 3.05 percent to US$ 56.09 million as against US$ 57.85 million seen last year. But things could be getting better slowly.
Amid slowly improving business environment, knowledgeable carpet traders said that the fresh flurry of delivery of backlogged products has pushed up export figures.
Export in the mid-March-April of 2006/07 increased by 13.69 percent to stand at US$ 7.2 million compared to exports during same period last year, when it was US$ 6.3 million.
Kabindra Nath Thakur, president of Nepal Carpet Exporters Association (NCEA) attributed the rise to the end of terai unrest and decrease in strikes, chakkajams and bandas. “That helped in delivery of products, which were supposed to be delivered in the previous months,” said he.
This is evident considering that the export figure in the ninth month of this fiscal year was 42.32 percent more than that in the eighth month. The monthly export in the period between mid-December 2006 and March 2007 stood at around the five million US dollar mark owing to the general and labor strikes in the industry.
Thakur, however, warned that the recent increase should not be taken too positively, as the overall picture of export of hand-knotted woolen carpet is still dismal.
“The labor problem that mired the industry is almost resolved. If peace persisted, we can produce and deliver carpets in time. But don't expect too much good news. A lot of other factors have increased the cost of production,” he said.
He informed that a settlement with the labor unions to end labor strike has added five to ten US dollars to the current cost of producing per square meter of carpet. The cost of processing, wool and other factors of production has also gone up.
This has added some seven to seventeen US dollars to the current rate for the finished products. Another factor affecting the market is the sharp decline in the value of the US dollar.
Thakur said that the government's apathy toward the industry, which is Nepal's biggest foreign currency earning export, still continues pushing clients toward neighboring India.
According to Thakur, 1,484,484.42 square meters of carpets were exported in 2005/06 fiscal year, while exports would not even cross the 1.2 million mark this fiscal year.
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