KATHMANDU, Nov 30: While the majority of goods in the country are imported from abroad, the carpet industry has emerged as a beacon of hope. Nepali-made carpets have gained popularity not only in the domestic market but also internationally. These textile floor coverings are now being exported to around 50 countries worldwide.
According to the Department of Customs, a total of 832,517 square feet of carpets, valued at Rs 3.91 billion, have been exported in the first four months of the current fiscal year (FY 2024/25). Tenzing Sherpa, president of the Nepal Carpet Manufacturers and Exporters Federation, highlighted the growing popularity of Nepali carpets in the international market. "Sixty percent of the carpets exported from Nepal are destined for the US market," he said, "Hand-woven carpets are in high demand globally due to their superior quality."
Carpets rank second among the most exported items from Nepal. While soybean oil tops the list, its value addition is relatively low since its raw materials are imported before being exported. Sherpa said that carpets are the leading item with the highest value addition. "Carpets have an 80 percent value added," he said, "This presents an opportunity to earn foreign currency through carpet exports."
Of the 50 countries where Nepali carpets are exported, the largest share goes to the United States. In the first four months, carpets worth Rs 2.3 billion have been exported to the US, underscoring the popularity of Nepali carpets in the American market. Traders also report a growing demand for Nepali carpets through online platforms in the US.
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An online payment system would make it easier to expand the market for Nepali carpets in the US. Carpets are custom-made and exported based on designs provided by customers. These carpets are exported to a diverse range of countries, including the US, Australia, Austria, Belgium, Brazil, Canada, China, Czech Republic, Denmark, Finland, France, Georgia, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Korea, Kuwait, Lebanon, the Maldives, Mexico, the Netherlands, Norway, Oman, Portugal, Qatar, Russia, Taiwan, Thailand, Turkey, Dubai, the UK, Uruguay, and others.
While the country imports everything from salt to gold, carpets are being successfully exported, marking a promising aspect of the export trade. If the quality is maintained and exports continue to grow, it will significantly contribute to boosting the country's economy and help reduce the trade deficit. In the past four months alone, carpets and floor coverings worth approximately four billion rupees have been exported. The carpet industry operates commercially in Kathmandu, Sarlahi, Makwanpur, Dhading, Sindhupalchok, and other districts, providing employment to around two hundred thousand people.
Carpets were once the country’s largest export item. After a period of continuous decline, exports have started to rise again. In the fiscal year 2019/20, carpets worth Rs 6.15 billion were exported. This figure grew to Rs 12.25 billion in the fiscal year 2022/23, and in the fiscal year 2024/25, exports reached approximately Rs 13 billion.
Business owners believe that carpet production could be further increased with government support. Currently, some raw materials, such as wool from sheep raised in the high Himalayan regions, are used in production. Along with wool, silk, silk fibers, and yarn are also employed. Raw materials are also imported from China, New Zealand, and India. Sherpa said that there is a significant opportunity if the government supports domestic raw material production. "Farmers in the high Himalayan regions should be assisted in sheep farming to ensure a steady supply of raw materials,” he said.
Due to a lack of skilled workers, modern technology, and effective market promotion, carpet production in Nepal has not yet reached its full potential. Nepal has offered a five percent subsidy on exports, but President Sherpa said that despite this grant, the payment has not been received for a year. "We have not received the grant for a year because there is no budget," he said, “If the payments were made on time, it would have been a relief."
While around 200 carpet industries are registered with the federation, it is estimated that there are approximately 800 small and large carpet producers. A 100 percent wool carpet is sold for about $200 per square foot. Since the carpets for export are hand-woven, they take a considerable amount of time to produce. Most of the workforce in the carpet industry consists of women.
After the political changes in Tibet in 1959, many Tibetans came to Nepal as refugees. In response, the government established a "Handicraft Training Center" in 1967 in a remote part of Lalitpur to train refugees in carpet weaving.
