South Asian Business news and information

For Nepal, export of carpet is very important. In fact, carpet is the second most important export commodity for the country. However, Nepal is suffering decline in export income from carpet. Nepal has seen some stability in the last one year and many observers hoped that it would help the economy. Yes, it is helping the economy but not the carpet export.

eKantipur.com reported:

According to data compiled by Trade and Export Promotion Center (TEPC), the value of carpet exported during the period stood at US$ 48.9 million whereas such exports during same period last year were at US$ 51.5 million.

Most carpet industrialists blame the worsening industrial environment for the continued slump in the exports of carpet and predict an even bleaker road ahead.

“Strikes, bandas, and labor problems have together taken their toll of major importers' confidence on our capacity to deliver orders on time,” said Kabindra Nath Thakur, president of Nepal Carpet Exporters Association (NCEA). As a result, orders for this year's export, which should have been received in February and March, has remained nominal. “It has mainly gone to India,” he said. If the situation continued, the total export might slip by over 20 percent by the end of this fiscal year, he said.

“Owing to trade unions' strike and terai unrest, we haven't been able to deliver our consignments on time. So, many of our clients have cancelled their orders,” Bhim Pokharel, manager of Pioneer Carpet Industries, one of the major exporters suffering from the export slump.

This is a sad story for Nepalese carpet traders. Nepalese government has to come forward and make a balance. Of course, no one likes exploitation of poor labors. At the same time, traders need to make profit too. So, Nepalese government should try to find a balance and help both the trade union leaders and the owners of carpet factories.