Three major export sectors of Nepal, namely, readymade garments, woollen carpets and Pashmina, have experienced a sharp decline in exports in recent months, owing to slump in demand from both the Western markets as well as its southern neighbour India. According to the statistics released by the country’s central bank – Nepal Rastra Bank (NRB) – the country’s apparel exports to third countries, i.e. countries other than India, dipped by around 37 percent year-on-year to around Np Rs. 1.93 billion, during the first eight months of the ongoing fiscal that began on July 16, 2012.
Clothing exporters attribute the huge fall in exports to debt crisis in Europe, the key consumer of Nepali apparels, Republica reported. Meanwhile, garment exports from Nepal to India dipped by about 66 percent to Rs. 124.5 million during the eight-month period, and traders who were buoyed up about two years ago due to rising exports to India are now expressing reservations about the future export growth to India. During the same period, exports of Pashmina from Nepal also dropped by 47.7 percent year-on-year to Rs. 1.08 billion. Of this, India imported Pashmina worth around Rs. 35.4 million, which is 44 percent higher than the value of exports made during the same period last year. Exports of woollen carpets from Nepal to countries other than India also dipped by 15.8 percent to Rs. 3.87 billion during the period under review, which is also attributable to waning demand from Europe.
However, carpet retained its position as Nepal’s fourth largest export product during the period under consideration. According to the Trade and Export Promotion Centre statistics, Nepal exported around 346,065 square metre of carpet worth Rs. 3.43 billion during July 16-March 15, 2012-13.
