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FHAN reports depression in handicraft export

Mar '07
Federation of Handicraft Associations of Nepal (FHAN) reported that a fall is seen in export of pashmina, metal and handmade paper products. With this, a decline in Handicraft export by 5.1 percent in first half of present financial year is observed.

During the first six months of 2006-07, Nepal exported handicraft goods valued Rs1.52 billion compared to Rs1.6 billion in the same period last fiscal year.

Pashmina, the largest export product of the country, contributes 21 percent to total handicraft exports, dropped by 13 percent to Rs316.99 million.

Reason behind this drop is country's incapability to compete with cheaper pashmina manufactured by Chinese and Indian companies.

According to FHAN reports, exports of non-textile products like metal craft and handmade paper products, declined by 25 and 12 percent, respectively.

The country exported metal craft valued Rs182.7 million and Rs119.63 million worth of handmade paper products. These two products account for 12 and 8 percent stake in the country's total handicraft exports, respectively.

A sharp fall is also experienced in export of woolen goods. Products worth of Rs311.81 million is exported in the first six month of current fiscal year. Last year woollen goods worth Rs410.28 million were exported.

Exports of cotton goods came down by three percent to Rs46.36 million; export of wood crafts fell by around seven percent to Rs25.63 million; export of hemp goods dropped by around 38 percent to Rs13.24 million.

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