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Nepal handicraft exporters seek change in export mechanism
Apr '13
Federation of Handicraft Associations of Nepal (FHAN) is seeking a change in the country’s handicraft export mechanism to be able to draw better export estimates.
The Federation said Nepali handicraft exports are quite encouraging, but it becomes difficult to draw the exact export estimates, in the absence of a proper monitoring mechanism, hence the Government should develop an advanced mechanism to draw an accurate idea of actual exports, The Himalayan Times reported.
Over 80 percent of the country’s handicraft exports take place through trading firms engaging in merchandise export. However, as these firms are not authorized channels for merchandise exports, exports through them are never counted, FHAN said.
FHAN Director General Dilip Khanal said that both Indian as well as Nepali authorities are optimistically considering authorizing merchandise export. 
He said they have even urged the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) several times to allow duty free exports of merchandise, however FNCCI has not decided on it yet, Mr. Khanal said.
He said India is a key market for Nepali handicrafts, and hence the Government should also consider allowing cash incentives for exporters to India, operating through formal banking channels.
Besides, FNCCI should also come forward and authorize merchandize export through trading firms.
Briefing on export figures, Mr. Khanal said as per the central bank statistics, Nepal’s handicraft exports to India have plummeted by about 72 percent to Np Rs. 16.1 million in the first eight months of the current fiscal that began on July 16, 2013, as compared to exports of NP Rs. 57.5 million made during the corresponding period of last year.
Meanwhile, handicraft exports to other countries also dipped by 49.7 percent year-on-year during the eight-month period, he added.

Fibre2fashion News Desk - India

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