Carpet industry may get soft loan
KATHMANDU, June 29:
The ailing carpet industry could get a lease of life, if the government fulfils its promise. “The government has assured to provide soft loan to the carpet industry,” said Nepal Carpet Exporters' Association president and CA member Kavindra Nath Thakur.
Finance Minister Bharat Mohan Adhikari has assured to provide soft loan to carpet industry in new budget, he said adding that he has assured to facilitate the industry with soft loan at four per cent interest rates to revive the once largest foreign currency earner.
In the recent years, higher production cost, lack policy stability, and rising interest rates have hit the Nepali carpet industry hard.
“There is no new orders for this year,” he said. Though foreign trade statistic of the current fiscal year revealed an increment of 17.5 per cent, “it is due to last year’s orders, Thakur said, adding that increment in price of raw materials and labour wages have badly hurt the sector.
Nepal imports raw materials worth millions from New Zealand and price has doubled since mid-April this year. Annual imports of wool from New Zealand comes to around 45,600 kg and the recent price hike of raw material is a setback to the already ailing sector, he added.
Last year, Nepali carpet exporter used to import wool at the price of Rs 250 per kg, which now costs to double at Rs 450 per kg. Similarly, labour wages also increased to Rs 6,100 from last year’s Rs 4,600, Thakur said.
Along with the increment in price of raw materials, the new price quote of Nepali carpet has been doubled, which is affecting international orders, according to the association.
According to Thakur, industrialists are paying an interest rate of 15 per cent to 16 per cent. “Nepali carpet is less competitive in the international market,” Thakur said. The association has also urged the government for a separate Carpet Policy for the revival of the industry. For the revival, the government should form a permanent high level Carpet and Wool Development Council for the development and promotion of Nepali carpet.
Recently, the association had also submitted a 25-point memorandum to the Finance Minister suggesting him to put the industry on national priority list. According to the association, government has failed to implement suggestions of high level working committee for-med after 2009-10 budget.
Source: THT
The ailing carpet industry could get a lease of life, if the government fulfils its promise. “The government has assured to provide soft loan to the carpet industry,” said Nepal Carpet Exporters' Association president and CA member Kavindra Nath Thakur.
Finance Minister Bharat Mohan Adhikari has assured to provide soft loan to carpet industry in new budget, he said adding that he has assured to facilitate the industry with soft loan at four per cent interest rates to revive the once largest foreign currency earner.
In the recent years, higher production cost, lack policy stability, and rising interest rates have hit the Nepali carpet industry hard.
“There is no new orders for this year,” he said. Though foreign trade statistic of the current fiscal year revealed an increment of 17.5 per cent, “it is due to last year’s orders, Thakur said, adding that increment in price of raw materials and labour wages have badly hurt the sector.
Nepal imports raw materials worth millions from New Zealand and price has doubled since mid-April this year. Annual imports of wool from New Zealand comes to around 45,600 kg and the recent price hike of raw material is a setback to the already ailing sector, he added.
Last year, Nepali carpet exporter used to import wool at the price of Rs 250 per kg, which now costs to double at Rs 450 per kg. Similarly, labour wages also increased to Rs 6,100 from last year’s Rs 4,600, Thakur said.
Along with the increment in price of raw materials, the new price quote of Nepali carpet has been doubled, which is affecting international orders, according to the association.
According to Thakur, industrialists are paying an interest rate of 15 per cent to 16 per cent. “Nepali carpet is less competitive in the international market,” Thakur said. The association has also urged the government for a separate Carpet Policy for the revival of the industry. For the revival, the government should form a permanent high level Carpet and Wool Development Council for the development and promotion of Nepali carpet.
Recently, the association had also submitted a 25-point memorandum to the Finance Minister suggesting him to put the industry on national priority list. According to the association, government has failed to implement suggestions of high level working committee for-med after 2009-10 budget.
Source: THT
