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Carpet industry in tatters
Jul '10
Hand-knotted carpets in Nepal have again made its mark as the largest export item of the country. However, the industry witnessed 32 percent fall, over the same period, last year, as the overall earning of the industry this year, stood at Rs1.5 billion, less than that of last year's.

As per Central Carpet Manufacturers Association, a number of producers are closing their manufacturing units, while many exporters and producers of late, have started refusing new bulk orders. Such a trend is new into the carpet industry and was seen only in the RMG industry.

This new trend is troubling policymakers, who are trying to take measures to give a fillip to the exports sector. They had set their focus, so far, on tax incentives to help the leading export industries get rid of the ongoing mess.

However, as per the exporters, only tax incentives would not give expected outputs, and all such measures would be of no use if the amendments will not be done in labor law by the government.

Moreover, if the government will not pay attention towards carpet industry insiders' demands of instating order-based recruitment and lay off mechanism, the industry will face more problems. The key export goods manufacturers have been asking for such facility since few years.

Currently, these producers have to take the responsibility of their complete staff, which has been increasing cost of doing business along with reducing the competence of Nepali carpets in the global market, lamented the manufacturers.

Fibre2Fashion News Desk - India

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