Domestic carpet sector gets no new order

Thu, Aug 18, 2011 12:00 AM on Others, Others,
KATHMANDU:
The Nepali hand-knotted woolen carpet that once ranked second in terms of overseas export has failed to receive new order for the current fiscal year.

“The increment in the price of raw materials has increased price of the Nepali carpet for its international buyers,” president of Nepal Carpet Exporter’s Association Kabindra Nath Thakur said. “The increase in price has hit the new orders for the new fiscal year,” he said, adding that current export value in the export data of carpet are the previous fiscal year’s orders.

“Because of high cost of production and lack of skilled labour, Nepal is fast losing its hard-earned reputation as a top manufacturer of hand-knotted carpet in Germany, America and Switzerland,” Thakur said.

Last year Nepal imported raw materials for the carpet from New Zealand for Rs 250 per gram whereas, now the raw material price has gone double to Rs 450 per kg resulting in high cost of production. The increased cost of production due to increment in the price of raw materials, has doubled the finished price of Nepali carpet affecting the new orders.

New Zealand doubled the price of wool since mid April this year. Annual import of raw material from New Zealand comes to around 45,600 kg, whereas labour wages has also increased to Rs 6,100 from Rs 4600, said Thakur.

The recent price hike in raw materials, increment in the labour wages and government apathy has discouraged the already ailing carpet sector, he said, adding that the production of Nepali carpet has declined to 6.80 million sq-metres from 8.80 million sq-metres in the last fiscal year.

Lack of sufficient skilled manpower is yet another reason for the decline in production of quality Nepali carpet, according to Thakur. In 1962, Nepal launched the commercial shipment of the carpet with a sample consignment to Zurich, Switzerland. Nepali carpets are made of the highest fleece wool imported from Tibet, New Zealand and Britain. The price of the Nepali carpet basically depends on its quality standard, and size. The export of Nepali carpet spreads over 40 countries including Germany, USA, Belgium, Britain, Turkey, Switzerland, Japan, Spain, Canada, and Italy. Among them, Germany and USA are the biggest markets.

Source: THT