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Carpet Village to restore glory of industry
Apr '10
Nepali carpet industry awaits government's nod for the development of Carpet Village by government formed-special committee, to help restore this once flourishing industry.

The carpet industry is suffering from high manufacturing cost, owing to dearth in workforce, due to which the industry cannot give timely deliveries, said, Kabindra Nath Thakur, President, Nepali Carpet Exporters Association (NCEA).

Thakur also said that, “The carpet industry lacks both new recruitments and training programmes to generate skilled workforce. All that the industry has is raw materials to produce goods.”

Political instability and hostile industrial environment, lack of effective policy and government apathy, have hindered the growth of this once flourishing carpet industry. This has resulted in a reduction of overseas sales of carpets which has further led to a fall in the manufacture of Nepali carpets by 60 percent as compared to figures of last year.

The committee consists of members from NCEA, Federation of Nepalese Chambers of Commerce and Industry (FNCCI), State Minister for Industry, Dan Bahadur Chaudhary, Central Carpet Industries Association (CCIA) and also members from the Ministry of Industry, Commerce and Labour.

According to Thakur, development of a Carpet Village will help reduce cost of manufacturing. He said, “The village in consideration will include a carpet training centre that will develop new research studies to produce raw materials, which will in turn help manufacture fine quality carpets.”

Currently, raw materials are imported from New Zealand and Tibet, while chemicals are brought from Switzerland. Imports from Birgunj now have import-duty levied on it, which has further added to the industry's buying costs. All this has raised the manufacturing costs thus reducing Nepali carpet's competitiveness in global markets, informed Thakur.

“We hope that, the proposal for forming a carpet village, put forth by the special committee, will be considered seriously by the government” added, Thakur.

Earlier there were 900 carpet industries and currently there exist only 200 industries. This scenario had led to a consistent and frequent reduction in the manufacturing standards, leading to an adverse fall in the quality of Nepal's yarn production and weaving segments.
Owing to this decline, Nepal is slowly losing its repute as a market leader in hand-knotted carpets along with losing its valuable share of the global markets. Germany, America and Switzerland are the key Nepali carpet importers.

He said by concluding, “Due to a reduction in workforce from 500,000 to 100,000 now, production of carpets is expected to be around 600,000 sq meters”.

Fibre2Fashion News Desk - India

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