Call to amend central bank diktat
KATHMANDU,JAN 2:
Carpet exporters urged the central bank to amend its directives regarding system of full shipment.
Nepal Rastra Bank (NRB) has recently directed exporters to make full shipment after getting advancement certificate from banks.
“It is easier to make partial payment due to the existing problems in the carpet industries,” said president of Nepal Carpet Exporters’ Association, Kabindra Nath Thakur. “We should have bulk production for full shipment but it is not possible in current crisis.”
The carpet industry is hit by insufficient raw material and lack of skilled labour coupled with extended load shedding hours that has slowed down production.
The carpet exporters are making partial shipment so that it is easy to fulfill the orders and make timely production of required quantity for the third party.
The association has submitted a six-point memorandum to the central governor Dr Yubraj Khatiwada also asking for soft loan to the ailing carpet industries.
According to Thakur, the governor has assured to make necessary changes in the directives after consulting with concerned parties – Nepal Bankers’ Association and Nepal Carpet Exporters’ Association.
“The banks are charging high interest rate of around 15 to 16 per cent on soft loan,” the association said, asking the central bank’s support for its promotion. “The carpet industry was once the highest foreign currency earner.”
During the fiscal year 2010 -11, Nepal exported around 700,000-sq-meter of hand-knotted carpet. Nepali hand-knotted carpet — in last one-and-a-half decade — has lost 70 per cent of its export share in the international market.
Nepal used to be the third largest supplier of hand-knotted carpet in the international market between 1993 and 2001 but currently the carpet industry is fighting for its survival. There are very few carpet industries like Paramount Carpet, Himalayan Rugs, NP Rugs, Seneon Carpet, Fishtail Carpet Industry, Exotic Oriental Crafts, TT Rugs, Rolpa Carpets, which are still supplying quality carpets to the international markets.
Source: THT
