Traders said the Indian move has weakened the competitiveness of Nepali Pashmina in the Indian market.[break]
Trade and Export Promotion Center (TEPC), which is authorized agency to compile trade data, states that exports of Pashmina products to the southern neighbor plunged to Rs 55.35 million during the year 2011/12 from Rs 144 million recorded the year before.
"Demand for our Pashmina from India dropped during the fiscal year 2011/12 and the trend still continuing as Indian customs officials marked up the MRP by 20 percent," said Dinesh Tuladhar, who has been exporting Pashmina products to India for the last few years.
Tuladhar said demand for Nepali Pashmina has been gradually going down as Indian customers now prefer cheaper Indian Pashmina products.
He said 12 percent countervailing tax being imposed by India on Nepali Pashmina for the last few years had already started to dent Nepali Pashmina´s market in India.
He also attributed the fall in the exports of Pashmina to the growing number of Pashmina factories in India. "The number of Pashmina factories in India has grown markedly over the last few years," he added.
Pushpa Man Shrestha, president of Nepal Pashmina Industries Association, said Nepali Pashmina products will lose the Indian market if the Indian government does not arrange easy entry.
However, total export of Nepali Pashmina product including Chyangra Pashmina has gone up by 16 percent to Rs 1.9 billion during the fiscal year 2011/12 compared to the previsous year. Nepal has registered the trademark of Chyangra Pashmina in 41 countries most of them in North America and Europe. Similarly, the process to register the trademark in Brazil, Russia, the UAE and China is going on.
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