Exports soar last FY

KATHMANDU, SEP 01 -

Exports of almost all major goods increased in the fiscal year 2011-12. According to Nepal Rastra Bank (NRB), exports of woollen carpet, pashmina, handicraft, readymade garment, silver jewellery and handmade paper and paper products surged last year.

Woollen carpets worth Rs 6.93 billion were shipped abroad in the last fiscal, representing a jump of 42.7 percent.

President of Nepal Carpet Exporters’ Association Kavindra Nath Thakur attributed the increase in carpet exports to a rising dollar and swelling demand in the US. According to him, US buyers prefer expensive carpets. “There is increasing demand for carpets in 100 knots and 150 knots besides carpets woven with a mix of silk and nettle fibres mainly in the US,” he said.

Thakur added that orders had tapered off recently, and urged the government to ease the paperwork to obtain cash incentives and refinancing in order to boost exports.

Readymade garments and pashmina were the second and third largest exports after woollen carpets. Readymade garment exports soared 30.8 percent to Rs 4 billion while pashmina exports jumped 42.1 percent to Rs 3.23 billion. Likewise, the export of handmade paper and paper products registered a growth 47.2 percent to Rs 587.3 million. Wood and metal crafts increased 11.5 percent to Rs 510.1 million.

Bikash Ratna Dhakhwa, president of the Federation of Handicraft Associations of Nepal, attributed the jump in exports to greater promotion in the international market. According to him, innovative products made of handmade paper are popular among US buyers while metal ritual utensils are in demand in China and Europe.

Similarly, tea and readymade leather goods also witnessed impressive growth in their export earnings. Tea exports almost doubled to Rs 251.8 million while readymade leather goods increased five-fold to Rs 100.6 billion. Exports of herbs, silverware and jewellery and tanned skin also swelled during the period. Although pulses with earnings of Rs 2.49 billion secured the fourth position in the list of top exports, receipts were down 25.6 percent compared to the previous year.

Meanwhile, exports to India increased 14.4 percent during the last fiscal year. Nepal exported goods worth Rs 49.61 billion to the southern neighbour. Textiles (Rs 5.13 billion), jute products (Rs 4.06 billion), polyester yarn (Rs 3.65 billion), zinc sheets (Rs 3.34 billion) and cardamom (Rs 3.27 billion) were the major exports to India during the period.

Despite the increase in exports, Nepal’s trade deficit rose 16.7 percent. The country exported goods worth Rs 74.26 billion while imports accounted to Rs 461.66 billion.

Source: The Kathmandu Post