Nepali carpet exports post positive growth

16 Oct '12

2 min read

Woollen carpet exports from Nepal grew by 21.98 percent year-on-year during Nepali fiscal 2011-12 that ended on July 15, 2012. Exports grew from 2010-11’s Np Rs. 4.92 billion to Rs. 6 billion in 2011-12, according to statistics released by the Trade and Export Promotion Centre.

The US imported Rs. 2.56 billion worth of carpets and stood to be the biggest importer of Nepali carpets during the fiscal, while Germany followed with imports worth Rs. 1.57 billion.

The rise in exports was mainly on account of a rise in the rate of dollar during that time, according to the Nepali Carpet Exporters’ Association.

The Trade and Export Promotion Centre said Nepali woollen carpet exports grew only in terms of value during the review period, and a drop was noticed in export volumes for the period. As against 2010-11’s exports of 833,409 sq m, only 684,455 sq m of carpets were exported in 2011-12.

Citing financial instability in Germany, which used to be the leading importer of Nepali carpets, as the main reason responsible for the drop in carpet exports, the association said carpet production also contracted by over 80 percent in 2011-12.

An individual carpet manufacturing unit, which produced around 200,000 sq m of carpet per year during industry’s peak period, now hardly churns out 12,000-35,000 sq m of hand-knotted carpets per year, the association said.

Embracing about 160 carpet manufacturing units, Nepal’s domestic industry is grappling for survival due to factors like soaring costs of raw materials, high labour charges and inadequate government support.

While cost of wool has gone up from Rs. 200 per kg in 2010 to Rs. 450 per kg now, labour charges have also jumped from Rs. 500 per metre to Rs. 1,100-1,200 per metre.

Fibre2fashion News Desk - India

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