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Kathmandu Saturday August 11, 2001 Shrawan 27, 2058.
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Pasmina
exports record nominal decline
Post Report
KATHMANDU, Aug 10 - Despite the nose-dive
decline in the export of pasmina in the second half of the last fiscal year, the strong
export growth rate achieved in the first half largely prevented the export of overall
pasmina products from a major tumble.
According to the figures complied by
Handicraft Association of Nepal (HAN), the overall export of pasmina products, during last
fiscal year recorded a nominal decline of less than half per cent to remain at Rs 5.64
billion from Rs 5.66 billion recorded in the previous year.
Despite the double-digit tumble in the
pasmina export to India, the largest buyer, the robust growth in export seen towards some
of the countries of Europe, North America and Japan played crucial role in maintaining the
export figure almost on a par with the previous year’s.
During last year, the total export to India
dipped by almost 30 per cent as compared to the previous year and remained at Rs 1.68
billion. Similar plunges were also recorded for most of the major European buyers. The
export towards Britain, during the period, squeezed by over 35 per cent while export to
Canada also declined by over 24 per cent.
However, as a sign of relief to some extent,
the export to USA, second largest buyer of Nepalese pasmina products, registered a growth
of almost 6 per cent to touch Rs 1.11 billion from Rs 1.05 billion while such growth in
the export to Germany was nearly 32 per cent.
Similarly, the export to France surged by
almost 30 per cent to touch Rs 230 million while Japan recorded the most impressive growth
of more than cent per cent to touch Rs 1.08 billion from Rs 514 million recorded previous
year. In the like manner, with the robust soar of over 50 per cent , the export volume to
Italy touched Rs 150 million.
Though the recent figure doesn’t paint
pessimistic scenario, but in reality, the future of the domestic pasmina industry is
bleak. The orders received for the supply of various pasmina products, so far, is nominal
as compared to the figures of last year. Since the demand of pasmina products booms in the
winter season, pasmina producers usually receive supply orders in between May to August.
The record low realizations of supply orders,
in recent months, has raised serious questions over the sustainability of the pasmina
industry which, in a short span of time, had spurted impressively to become the third
largest exportable item.
Due to shrinking orders, entrepreneur’s
confidence has dwindled dangerously and most of them have even started withdrawing their
investment sensing that the revival of the industry in the near future looks remote.
Strong effects of dwindling investment in the industry have started to emerge.
As per the sample survey conducted in three
major pasmina producers by The Kathmandu Post, the overall production of pasmina products
had declined by more than 90 per cent and the overall employment opportunities squeezed by
over 75 per cent as compared to the same period last year.
Experts say, the slumping quality of pasmina
products, which has deteriorated heavily mainly due to widespread use of low quality
imported pasmina yarn, is the cause of plunge in demand in the international market.
Pushpa Man Shrestha, Managing Director of
Nepal Pasmina Industry blamed that the deteriorating quality combined with excessive
production is the main cause for shrinking pasmina export.
"Some businessmen are engaged in
exporting various products of ordinary wool in the name of pasmina products, which has
greatly eroded the fame of Nepali pasmina in the western market," he said.
Entrepreneurs demand privilege for genuine
exporters while importing raw materials. Exporters are confident that Nepalese pasmina
products could compete with similar Chinese products, the top competitor of Nepalese
products, in the western market, if the government scraps tax on raw materials and
introduces some export intensive.
Meanwhile, with an aim to curb shrinking export
and to diversify export market, Pasmina and Woolen Products Development Committee formed
under HAN has announced a number of pasmina products promotion programs.
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