Nepal's garments, Pashmina & carpet exports nosedive

16 Jan '13

2 min read

Nepal’s garments, Pashmina and woollen carpet exports experienced a sharp fall of 30 percent during the first five months of the ongoing financial year that began on July 16, 2012.

Nepal exported Np Rs. 4.78 billion worth of apparels, Pashmina and carpets during the five-month period as compared to exports worth Rs. 6.89 billion made during the corresponding period of last fiscal, Republica reported.

Traders held the continued slowdown in Western economies, particularly in Europe and power crisis within the country to be responsible for the sharp decline in exports.

According to Nepal’s central bank – Nepal Rastra Bank – statistics, Nepal’s clothing exports during the review period to world markets totalled Rs. 1.38 billion, 46 percent below exports recorded during the same period of last year.

Apparel exports to India totalled Rs. 100 million, registering a decline of 62.5 percent compared to exports of Rs. 267 million made during corresponding period of last year. Nepal’s garment exports to other countries plummeted by 46 percent year-on-year to Rs. 1.28 billion, the data showed.

A considerable decrease was also seen in exports of Pashmina shawls, which form a part of the Nepal Trade Integration Strategy (NTIS), the official policy paper of the Government to encourage exports of certain commodities.

Exports of Pashmina products to foreign countries reduced by 44 percent year-on-year to Rs. 760 million during the review period, however, its exports to India surged by 84 percent year-on-year to Rs. 27.4 million.

However, entrepreneurs are hopeful that Pashmina exports would soon shoot up, as the International Trading Center (ICT), a combined agency of the United Nations and the World Trade Organization (WTO), has undertaken to provide US$ 1.42 million or NP Rs. 128.16 million to encourage production and export of the commodity in lines with the Pashmina Enhancement and Trade Support (PETS) Project.

Nepal Government would also extend US$ 200,000 for the three-year PETS project.

Showing a year-on-year decline of 10 percent, exports of hand-knitted woollen carpets from Nepal fell to Rs. 2.61 billion during the period under review.

The fall in exports of carpets was mainly on account of continued financial crisis in Europe, a major export destination for Nepali carpets. However, now China is emerging as a prospective market for the commodity, and the demand for Nepali carpets is increasing in that market, according to analysts.

Fibre2fashion News Desk - India

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