Nepal exported RMGs, carpets and Pashmina worth Rs 4.78 billion in the five-month period to mid-December, down from Rs 6.89 billion recorded in the same period last year. [break]
Traders attributed the drop to prolonging slowdown in Western economies, especially Europe, and political instability and power shortage in Nepal.
Data compiled by Nepal Rastra Bank, the central bank, show that Nepal exported RMGs worth Rs 1.38 billion to international markets, including India, in the review period--a 46 percent drop from the figure of last year.
India imported Nepali RMGs of Rs 100 million, which was lower by 62.5 percent from Rs 267 million recorded in the same period last year, while RMG exports to other countries dropped by a staggering 46 percent to Rs 1.28 billion in the period.
Similarly, exports of woolen carpets--another leading exportable item--plunged by 10 percent to Rs 2.61 billion in the five-month period.
Exports of hand-knitted woolen carpets have been hard hit by the ongoing economic crisis in Europe, a key market for Nepali carpets, although China is currently emerging as a viable market for this product where sales of Nepal-made carpets are rising.
Pashmina shawl, which is included in the Nepal Trade Integration Strategy (NTIS)--the government´s official policy paper to boost exports of selected products--also saw huge drop in exports.
This was because of fall in demand for these products in overseas markets, excluding India.
Overseas exports of Pashmina dropped by 44 percent to Rs 760 million in the five-month period, although exports of these products to India soared by 84 percent to Rs 27.4 million in the review period.
Despite efforts from both the government and entrepreneurs to promote Nepali Chyangar Pashmina, its exports could not pick up in the review period. This is the result of lack of international promotional activities, according to Pushpa Man Shrestha, president of Nepal Pashmina Industries Association (NPIA).
However, entrepreneurs are optimistic about Pashmina exports getting a boost soon, as the International Trading Center (ICT)--a joint agency of the World Trade Organization (WTO) and the United Nations--has pledged to extend US$1.42 million (Rs 128.16 million) to promote production and exports of Pashmina under the Pashmina Enhancement and Trade Support (PETS) Project. The government is also providing $200,000 for the three-year program.
“We hope the project will boost production and promote exports of Chyangra Pashmina in coming years,” said Shrestha.
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