Carpet export earnings up 6.2pc to $64.74m
KATHMANDU, AUG 01 -
Earnings from woolen carpet exports increased 6.12 percent to $64.74 million in the last fiscal year, according to the Trade and Export Promotion Centre (TEPC).
The export volume, however, fell 3.8 percent to 461,065sqm compared to the previous fiscal year 2012-13.
A surge in exports to countries likes the US and China, which are considered high-value markets of Nepali carpet s, was one of the major reasons for the growth in carpet exports earnings. Besides, cash incentives and refinancing facility offered by the government also boosted exports.
Anup Bahadur Malla, president of Nepal Carpet Exporters’ Association, said the refinancing facility, in addition to the cash incentives, helped carpet manufacturer lower their production costs.
“This has encouraged carpet exporters to diversify their business to international markets,” he said.
Under the refinancing facility, carpet exporters are offered loans at 4.5 percent interest. The government also provides 2 percent cash incentives to the exporters. Malla said the Duty Free-Quota Free access facility in the US to Nepali carpet s also helped make the product more competitive.
According to TEPC, the exports to the US, Australia, Belgium and China rose significantly. The US is the top buyer of Nepali carpet s, as it imported the product worth $33.02 million last year.
However, carport export earnings from Germany, which used to be the major market, decreased to $12.25 million from $13.63 million over the period.
Sambhu Sherpa, president of Central Carpet Industries Association (CCIA), said the rise in the exports of high-quality products to the US and China in particular helped boost the export earnings. He said these countries import woolen carpet s of more than 100 knots.
Exporters said China could be the top market for Nepali products. They said China accounts for around 35-40 percent of the total exports earnings. “However, the lack of banking services in China has been affecting carpet business there,” said Sherpa.
Chhiring Sherpa, senior vice-president at CCIA, attributed the falling exports to Germany to increasing diversification in the carpet business. Germany used to be the main business hub of Nepali carpet s, and the products were supplied to other European markets from there. “However, buyers from other European countries have started to deal with Nepali exporters directly,” he said.
Shangri-La Carpet was last year’s top exporter of hand knitted carpet . The company exported the product worth $4.86 million. Himalayan Art Carpet, Paramount Carpet, Tufenkian Nepal and NP Rugs Industries rounded out the top five. Himalayan Art Carpet topped in terms of quantity (27,571sqm ).
Tamarian Carpets Inc, USA, was the top buyer of Nepali carpet s. It purchased 30,481sqm of carpet worth $5.23 million over the period.
Top five carpet importers
Countries Earnings
USA $33.02m
Germany $12.25m
UK $5.11m
Canada $2.61m
Belgium $1.13m
Source: The Kathmandu Post
