With an intention to revive exports by uplifting the declining export of Nepali carpets and readymade garments, the Ministry of Commerce and Supplies (MoCS), has prepared a priority list citing 16 working projects to aid the development of country's export sector.
MoCS Joint Secretary, Surya Prasad Silwal, stated that as the remittances are going down on account of decline in exports, hence export promotion is a necessary measure. He also said that, the ministry has passed on the 16-point working project to the National Planning Commission (NPC) and the Ministry of Finance (MoF), while carrying out discussions with regards to the sustainable development of the economic sector.
In the meantime, Kabindra Nath Thakur, President of the Nepal Carpet Exporters' Association (NCEA) while expressing his concern over the sharp decline in export volume of carpets, stated that carpet export during the last six months of current financial year have gone down by 40 percent.
According to Thakur, owing to reasons like labour unrest, strikes and bandhs, Nepal's carpet exporters were not able to deliver the orders on time, resulting in cancellation of most of the orders, which subsequently were taken over others.
Thakur, also added that there also has been a hike in the price of raw material and that no facility in the form of incentive is available to them. Over and above this, income tax dues and bank interest are also significantly high. He opined that bank rates should be brought down by the government so as to make it affordable to the export sector.
In 2009, the total volume of carpet exports was 8.64 square metres, but with no fresh orders coming up NCEA anticipates that the total export of carpets in current year may not cross 600,000 square metres.
The industry during mid 90's, provided employment to over one million workers and accounted for one-third of country's exports while also being the country's leading foreign exchange earner, along with which, it contributed about Rs. 13 billion to the economy every year.
The industry today has contracted by around 70 percent owing to the volatile production conditions, unfavourable business situations and local disturbances. All these factors have lead to a considerable and constant fall in the production standards, since 2000.
Fibre2fashion News Desk - India