Home / Knowledge / News / Textiles / Soft loan provision can revive Nepali carpet industry
Soft loan provision can revive Nepali carpet industry
Jun '11
Over the past few years, factors like soaring cost of production, mounting interest rates and political instability coupled with a rise in raw material prices and labour cost have badly hit the carpet industry of Nepal.

However, if the Government makes provision for soft loans to the carpet industry, it would greatly relieve the troubled sector, according to the Nepal Carpet Exporters Association (NCEA).

The NCEA said that the country's Finance Minister Bharat Mohan Adhikari had earlier promised that under the new budget, provisions would be made to provide soft loans to the carpet industry at four percent interest rate, to revitalise the industry, which was once the country's biggest foreign exchange earner.

Nepal imports raw materials worth millions from New Zealand each year, which includes around 45,600 kg of wool. However, the two-fold growth in the prices of almost all items since mid part of April 2011 has come as a blow to the already troubled carpet industry.

Meanwhile, the export price of wool which stood at NPR 250 per kg last year has now jumped to NPR 450 per kg. The wages for labour have also increased sharply from last year's NPR 4,600 per month to NPR 6,100 per month. Accordingly, the price quoted for Nepali carpet has also doubled affecting the export orders.

In addition, the carpet producers have obtained loans at 15 to 16 percent interest rates. All these factors together have rendered Nepali carpets less competitive in the world markets.

Though there is no inflow of new orders in the current year, foreign data indicates a rise of 17.5 percent in carpet exports, which can be completely attributed to orders that were received during last year but have been executed this year.

Hence, the NCEA has called upon the Government to devise a separate Carpet Policy. It has also suggested that the Government should constitute a permanent high level Carpet and Wool Development Council which would work for up-gradation and development of Nepali carpet industry.

The NCEA has claimed that the Government has failed to execute the recommendations of the high level working committee constituted after 2009-10 budget. It has, by way of a 25-point memorandum, urged the Finance Minster to place the industry on the country's priority list.

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 26th Jun 2017

GSTN registration reopens

E-commerce operators and TDS (tax deducted at source) deductors can...

Textiles | On 26th Jun 2017

Expedite release of ROSL pending claims: TEA to Centre

The Tiruppur Exporters' Association (TEA) has again urged Union...

Textiles | On 26th Jun 2017

'Export promotion schemes to continue under GST regime'

The export promotion schemes will continue under GST regime, said...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search