Handicraft exports fall by 5 percent

With a sharp decline in exports of pashmina products, metal craft and handmade paper products, handicraft exports fell by 5.4 percent in the first eight months of the current fiscal year.

Federation of Handicraft Association Nepal (FHAN) has stated that the country exported Rs 1.81 billion worth of handicraft goods in the first eight months of 2006/07, as against Rs 1.91 billion of the similar period last fiscal year.

Exports had come down in the review period due mainly to the fall in demand of major foreign currency earning goods such as pashmina, metal and handmade paper products, states the latest report of FHAN.

According to the report, export of pashmina products came down by around 19 percent in the first eight months of the current fiscal year to Rs 362 million.

Officials of FHAN attributed the decline to inability of Nepali goods to compete with pashmina products manufactured by Chinese and Indian companies. Pashmina products make the largest contribution of around 20 percent to the total handicraft export.

Similarly, export of metal crafts also plummeted by around 16 percent. The report states that the country exported Rs 239.44 million worth of metal crafts in the review period. While export of handmade paper products fell by around 15 percent to Rs 144.25 million.

Metal craft and handmade paper products contribute to around 13 percent and eight percent of the total handicraft exports respectively.

Although statistics also show a sharp fall in export of woolen goods, FHAN officials said the drop was mainly due to separation of felt products from the category of woolen goods.

“Earlier, felt products were included in woolen goods segment. However, with the rise in export of felt products, the federation decided to put the product under an entirely different section,” said an FHAN official.

According to FHAN, the country exported Rs 334.94 million worth of woolen goods and Rs 143.75 million of felt products in the first six months of 2006/07.

The report further states that export of silver jewelry, which contribute to around 13 percent of the total exports, increased by around 10 percent in the review period to Rs 243.96 million.

Similarly, export of silk products -- which claim a stake of around five percent in the total handicraft exports - increased by around seven percent to Rs 93.65 million and export of cotton goods - which make up around four percent of the total handicraft exports -- increased by around 12 percent to Rs 65.4 million.