Kathmandu, June 9: The export of carpet witnessed a sharp 50 per cent fall during the first three months of the year 2000 compared to the last three months of the previous year.
Nepal exported 669 thousand square metres of carpet during the last three months of the year 1999, while the total export by the end of March this year was only 336 thousand square metres.
Saturation of German market (major importer) and Nepal’s inability to explore the new markets, devaluation of German currency and Euro and the flow of cheaper Indian carpet have been the causes for the downward trend in the export of the major foreign currency earner.
Export tax will affect carpet business further, Nepal Carpet Exporters’ Association (NCEA) President Kabindra Nath Thakur told the first annual general meeting of the Association here this afternoon. Finance Minister Mahesh Acharya has proposed tax on export earning in the budget for the Fiscal Year 2000/2001 presented in the Parliament a couple of weeks ago.
The government and the carpet traders should work together to address the problems facing the carpet industry and diversify the carpet market, Thakur said.
Minister for Industry, Commerce and Supplies Ram Krishna Tamrakar defended the export tax and said that the government’s policies were oriented toward industrial development and export promotion.
Tamrakar said that the government would push ahead the work of export promotion zone in Birgunj in co-operation with India. He also said that works would begin soon to regulate the Nepal-India boarder to check the unauthorised trade.
“The challenge facing us is to excel in the market,” President of the Federation of Nepalese Chambers of Commerce and Industry Pradeep Kumar Shrestha said. “The manufacturers should give special importance to design and quality to do well in the international market.”
Shrestha appealed to the government to develop necessary infrastructure to make Nepalese carpet competitive and assure its access to the market. He also called for initiatives to reach the fruits of carpet business to the small manufacturers.
President of Central Carpet Industries Association A. G. Sherpa said that the government’s decision to levy tax on export earning would mar the carpet industry that provided employment to thousands of people.
Officiating President of Nepal Chamber of Commerce Jagadish Prasad Khetan also said that the export tax would have negative impact on export oriented industries.
On the occasion, Minister Tamrakar gave away awards to Paramount Carpet Industries, Poomori Carpet and Pioneer Carpet three biggest carpet exporters in 1999.
The AGM also announced the new executive committee headed by Kabindra Nath Thakur. Deepak Bhattarai, Anup B. Malla and Deepak Bajracharya have been elected as first vice president, second vice president and general secretary respectively. Ramesh Adhikari has been named the new secretary and Kamal Mani Panthi treasurer.
The members include Hirandya Prakash Dhar, K. P. Ghimire, Kishan Sahani, Lalit Agrawal, Nawang Lama, Pramod Raj Satyal, Sandeep Sharda, Shakti Begani and Tsultrim Nawang Shrestha.