Though demand from European markets fell, Nepali exporters found new markets in US, which has for the first time emerged as the biggest single country importer of Nepali carpet.[break]
Official data shows Nepali woolen carpet was sold at Rs 8,018 per sq meter during the first 10 months of the current fiscal year, up from Rs 5,103 per sq meter and Rs 5,669 per sq meter recorded during the same period of the fiscal year 2009/10 and 2010/11 respectively.
Nepal exported 603,631 sq meters of woolen carpets worth Rs 4.84 billion over the first ten months of 2011/12. During the same period in fiscal years 2009/10 and 2010/11, Nepal had exported 652,517 sq meters of woolen carpets worth Rs 3.33 billion and 698,517 sq meters worth Rs 3.96 billion respectively.
Thanks to deepening financial crisis in Europe, US overtook Germany - the largest importer countries for the past many years - to become the largest single country importer of Nepali woolen carpets over the first 10 months.
According to the Trade and Export Promotion Center (TEPC), which compiles official trade data, Nepal exported 223,582 sq meters of woolen carpet worth Rs 2.1 billion during the period. During the period, Nepal exported 207,821 sq meters amounting to Rs 1.29 billion to Germany.
Germany and USA had imported 282,811 sq meters worth Rs 1.27 billion and 199,707 sq meters worth Rs 1.49 billion respectively during the same period in the last year.
Carpet exports to almost all the leading European markets fell during the period. Exports to the United Kingdom dropped to 29,333 sq meters from 32,66 sq meters of last year, Belgium to 12,077 sq meters from 13479 sq meters, France to 7,984 sq meters from 11,945 sq meters, and the Netherlands to 9,951 sq meters from 11,410 sq meters. Similarly, exports to Austria dropped to 9,772 sq meters from 15,122 sq meters, Italy to 5,501 sq meters from 6,336 sq meters, and Spain to 1,667 sq meters from 7368 sq meters.
Rajendra Bahadur Shrestha, executive member of Central Carpet Association (CCA), attributed the drop in exports to European countries to prolonged economic crisis there. He also said buyers there are importing cheaper carpets from countries like Turkey.
“Our untiring efforts to explore new market in the US have started to yield positive results as it became the largest single country imported in the 10-month period of the current fiscal year,” said Shrestha, who is also the proprietor of Pari Carpet -- a leading producer and exporter of Nepali hand-knotted carpet.
He said Nepali carpets are fast replacing traditionally dominant Iranian carpets, which are comparatively of lower quality, in the US.
“Rise in earning from carpet export is the result of strengthening US dollar against Nepali currency and rise in the prices of Nepali carpet on the back of rising production cost,” added Shrestha.
According to Nepal Rastra Bank, rupee weakened to Rs 85 per US dollar in mid-May from Rs 72 per US dollar recorded in mid-May last year.
“Nepali producers and exporters have increased export price of carpet by around 20 percent to cope with rising production cost,” said Shrestha.
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