Silver exports down 61%
KATHMANDU, Aug 9:
Export of silver jewelries dropped by whooping 61.6 percent in the first 11 months of fiscal year 2010/11, as compared to export figures of the same period of 2009/10.
According to Trade and Export Promotion Center (TEPC), Nepal exported silver products worth Rs 64.74 million during the period, lower than Rs 168.52 million recorded during the first 11 months of 2009/10.
Exporters say rise in the price of silver is the major reason behind fall in exports of silver products and jewelries. Rising silver prices have dealt a heavy blow to silver handicraft exporters, who were already struggling in international market in the absence of cadmium-free certification of Nepali silver products.
Handicraft exporters say international orders for silver products plunged by 40 percent this year as compared to the previous year. Bijay Ratna Tuladhar, CEO of Yak and Yeti Enterprises -- a major silver products exporter -- said export of silver products is on downward trend for the past nine years.
“Major importers like India, Thailand, Mexico, Indonesia and European countries place orders in bulk. But as Nepali silver products are completely handmade, we are not in a position to accept massive order,” Tuladhar said, adding, “It has emerged as a major hurdle for silver exports.”
He added that exports will not improve even if Nepali silver products get cadmium-free certification because of factors like manpower constraints and artificial hike in the price of silver.
Weakening US dollar, high crude prices and increasing use of silver in industrial sector have caused silver prices to climb to as high as Rs 1,350 per tola (11.664 grams) in the domestic market. Of late, silver is also becoming a safe haven for investors. This is leading to rise in demand for silver in the domestic market.
“Silver price is increasing every day. This is affecting production and export of silver products,” said Bikash Ratna Dhakhwa, president of the Federation of Handicraft Associations of Nepal (FHAN). “Since the price is not stable, many traders have stopped accepting international orders, which were already down cadmium issue.”
Silver exports had dropped by 47.3 percent in 2009/10 as compared to export figures of 2008/09. Nepal had exported silver products worth Rs 177.85 million in 2009/10 against Rs 337.73 million during 2008/09.
Tej Ratna Shakya, president of Nepal Gold and Silver Dealers´ Association, said overseas demand for Nepali silver products is falling in recent years due to use of cadmium in silver products to minimize production cost by some unscrupulous exporters.
“Thanks to slowing overseas demand, daily demand for silver has dropped by 75 percent this year as compared to the past year. Major international buyers of Nepali silver products are gradually shifting to countries like India and Thailand for imports,” said Shakya.
Nepal exports silverware and jewelries to more than 40 countries. US, Japan, Canada, UK, France, Italy and China are Nepal´s top buyers. Silver products have also been ranked as one of the major export commodities by the government.
Source: Republica
Export of silver jewelries dropped by whooping 61.6 percent in the first 11 months of fiscal year 2010/11, as compared to export figures of the same period of 2009/10.
According to Trade and Export Promotion Center (TEPC), Nepal exported silver products worth Rs 64.74 million during the period, lower than Rs 168.52 million recorded during the first 11 months of 2009/10.
Exporters say rise in the price of silver is the major reason behind fall in exports of silver products and jewelries. Rising silver prices have dealt a heavy blow to silver handicraft exporters, who were already struggling in international market in the absence of cadmium-free certification of Nepali silver products.
Handicraft exporters say international orders for silver products plunged by 40 percent this year as compared to the previous year. Bijay Ratna Tuladhar, CEO of Yak and Yeti Enterprises -- a major silver products exporter -- said export of silver products is on downward trend for the past nine years.
“Major importers like India, Thailand, Mexico, Indonesia and European countries place orders in bulk. But as Nepali silver products are completely handmade, we are not in a position to accept massive order,” Tuladhar said, adding, “It has emerged as a major hurdle for silver exports.”
He added that exports will not improve even if Nepali silver products get cadmium-free certification because of factors like manpower constraints and artificial hike in the price of silver.
Weakening US dollar, high crude prices and increasing use of silver in industrial sector have caused silver prices to climb to as high as Rs 1,350 per tola (11.664 grams) in the domestic market. Of late, silver is also becoming a safe haven for investors. This is leading to rise in demand for silver in the domestic market.
“Silver price is increasing every day. This is affecting production and export of silver products,” said Bikash Ratna Dhakhwa, president of the Federation of Handicraft Associations of Nepal (FHAN). “Since the price is not stable, many traders have stopped accepting international orders, which were already down cadmium issue.”
Silver exports had dropped by 47.3 percent in 2009/10 as compared to export figures of 2008/09. Nepal had exported silver products worth Rs 177.85 million in 2009/10 against Rs 337.73 million during 2008/09.
Tej Ratna Shakya, president of Nepal Gold and Silver Dealers´ Association, said overseas demand for Nepali silver products is falling in recent years due to use of cadmium in silver products to minimize production cost by some unscrupulous exporters.
“Thanks to slowing overseas demand, daily demand for silver has dropped by 75 percent this year as compared to the past year. Major international buyers of Nepali silver products are gradually shifting to countries like India and Thailand for imports,” said Shakya.
Nepal exports silverware and jewelries to more than 40 countries. US, Japan, Canada, UK, France, Italy and China are Nepal´s top buyers. Silver products have also been ranked as one of the major export commodities by the government.
Source: Republica
