"The task force will basically identify constraints facing the industry and recommend ways to revive it, so that its exports could rebound to record level of the past," said an official at Ministry of Industry. [break]
Started in mid-80s with technology brought in by Tibetan refugees, hand-knotted woolen carpet had jumped to the status of being the largest exports of Nepal in the late 90s. In 1999/00, carpet exports had soared to Rs 10.40 billion.
However, in the wake of conflict, labor stir and internal instability and controversies like use of hazardous dye and child labor, the industry soon caught downward trend. Despite odds, carpet exports in a year still stand close to Rs 6 billion. Apart from this firm hold in the international market, various studies referring to the possibility of producing raw wool in the country itself have tagged hand-knotted woolen carpet as one of the few products that can be relied upon to create employment, raise exports income and bridge the ballooning trade deficit.
"The taskforce will explore out the ways to reestablish the industry on the growth trajectory," said the source.
The taskforce is headed by Minister of State for Industry Dan Bahadur Chaudhary (Kurmi) and has senior officials from different ministries, including Industry, Commerce and Supplies, Finance and Labor, as members.
It also has representatives from Federation of Nepalese Chambers of Commerce and Industry, Central Carpet Industries Association (CCIA) and Nepal Carpet Exporters Association (NCEA), among others.
"We will hold a meeting soon and commence works," said Kabindra Nath Thakur, president of NCEA and member of Constituent Assembly.
Talking to myrepublica.com, Thakur elaborated that the taskforce will discuss on all demands and recommendation of carpet entrepreneurs that the government ignored in the past and also study all other possibilities.
Since the industry´s downturn, CCIA and NCEA have been urging the government to address labor issues so that manufacturing could be done uninterruptedly without undue rise in cost, relocate the industry in bordering town so that transit-transportation cost could be reduced and support farmers in northern hills for sheep-farming so that the raw wool could be acquired locally at cheaper rates.
To do away with labor unrest and pledge promotional package, they had demanded the government to support them develop a Carpet Village in or nearby the long-talked Special Economic Zone.
As for wool production, NCEA had urged the government to pledge subsidy to the farmers so as to lure them into sheep-farming.
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