European nations including the second largest buyer of Nepali carpet -Germany saw a decline in the quantity of carpet exports to 229,760 sq meters during the fiscal year 2011/12 from 337,766 sq. meters recorded the previous year though the total value of carpet exported to the Europe´s largest economy increased by around Rs 10 million. [break]
The UK, the third largest importer country, also imported 34,533 sq meters of carpet, down by 18 percent compared to the figure the previous year. However, total value of the carpet exported to the UK also rose by Rs 197 million to Rs 4.22 billion during the fiscal year 2011/12 compared to last year.
Similarly, other Euro-zone countries including Belgium, France, Switzerland, Italy, Turkey, Spain, Sweden and Denmark also witnessed a decline in the quantity of carpet imported from Nepal during the fiscal year 2011/12 as compared to the volume a year earlier.
“Deepening financial crisis in European region and weakening purchasing power of the buyers has dragged down export to the region. We are passing through a tough time to retain our position in the region where cheaper carpets from other countries including Turkey are flooding the markets,” said Gopal Krishna Shrestha, former vice-president of Central Carpet Industries Association.
Similarly, carpet export to Canada, Australia, Russia, Mexico and South Africa also tumbled during the period.
However, seven countries, including the USA, the largest importer, reported a rise in the import of Nepali carpets during the fiscal year 2011/12. The USA imported 259,633 sq meters of carpet during the year, up by 6.5 percent compared to last year´s figure. Similarly, Brazil, China, Bahrain, Japan, South Korea and Taiwan increased imports of Nepali carpet during the year.
Among the countries increasing imports of Nepali carpet, China witnessed nine-fold increase in imports, thanks to slowdown in European markets that forced the exporters to turn to the northern neighbor for carpet market. Total value of carpets exported to the worlds´ second largest economy also rose by more than five times over the year.
“Due to persisting financial slowdown in the Europe, a huge chunk of Nepali carpets were exported to China´s autonomous Tibet region where demands for the cheaper carpet is increasing,” said Shrestha.
Shrestha also opined that worsening shortage of workers in carpet industries have also weakened the capacity of local exporters to ensure timely shipment of carpet to buyers.
During the fiscal year 2011/12, Nepal exported 684,440 sq meters carpet worth six billion rupees. In the previous fiscal, a total of 833,410 sq meters of carpets amounting to Rs 4.92 billion were exported.
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