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Nepali carpet exports may witness sharp fall in FY'13
Feb '13
Carpet exporters in Nepal foresee a sharp fall in country’s overall carpet exports during the current fiscal that started on July 16, 2012, as the hand-knotted carpets are losing ground in export markets, according to The Himalayan Times report.
Nepal once exported around 3.3 million sq m of domestically-made carpets, but gradually the exports have dropped to 600,000 sq m during last fiscal. 
According to the Trade and Export Promotion Centre data, Nepal exported only about 200,000 sq m of carpet in the first five months of the current fiscal.
Anup Bahadur Malla, President of Nepal Carpet Exporters’ Association said Nepali hand-knotted carpet exports may not cross 400,000 sq m during remaining months of the fiscal, as there is no demand for Nepali hand-knotted carpets in local market, and now the product is also losing ground in global market. 
He added that the country’s carpet sector lacks skilled workforce and the Government does not provide any financial support to organize skill training programmes.
During the first five months, Nepal’s carpet exports dropped 22 percent to Np Rs. 2.17 billion from Rs. 2.77 billion recorded during same period of last fiscal. Previously, about 500,000 people were engaged in carpet industry, but today the number has dropped to just 100,000.
Mr. Malla said Nepal is considered to be a country that produces most fashionable carpets, whose designs and colours can be altered as per demand.
At present, about 200 Nepali firms export hand-knotted carpets to the US, Middle East, Canada and Western Europe.
Mr. Malla urged the Government to take the carpet industry seriously and help the producers and exporters to introduce new production trends and explore new markets. 
He suggested that rather than levying heavy taxes, the Government should bring the carpet industry within the purview of the cottage industry, and declare tax-exemption for garment, carpet and Pashmina industries.

Fibre2fashion News Desk - India

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