NATIONAL 5 (Spotlight Weekly)]

Under Threat

Prime Minister Girija Prasad Koirala's statement creates confusion in the carpet industry

By KESHAB POUDEL

Just two weeks after assuming power, Prime Minister Koirala's actions have injected terror in different sectors including security, administration and industry. Carpet industrialists are the latest victims of Koirala's statements.

The carpet industry, which is gradually recovering from its downturn, is once again mired in uncertainty after declaration by Prime Minister Koirala that he will remove carpet industries out of the valley.

Prime Minister Koirala, however, sees carpet industry as culprits behind the environmental consequences in the valley. This is not the first time when politicians have rocked the carpet industry. Whenever Nepal's industrial sector starts recovering, it faces uncertainty. In the last one decade, carpet industry survived through different problems.

The recent statements by Prime Minister Koirala has once again shrouded the industry with clouds of uncertainty. Industrialists argue that carpet weaving does not harm environment.

Carpet is the country's one of the largest exported items which employs more than half a million people and earns much needed foreign currency.

At a time when Nepalese carpet industry is competing with India, Pakistan and Iran, it needs stability on the part of location and policy.

Carpet industry cannot flourish in other parts of the country overnight as it requires the proper environment and suitable location.

"Every areas has its own characteristics. Computer industries grow in silicon valley. There is no guarantee that carpet factories will flourish equally well outside the valley," said Purna M. Shakya, Chairman of Nepal Carpet Industries.

It seems that Prime Minister Koirala is not speaking seriously. Otherwise, he might have felt the ripples that could arise through it.

As United States is considering to lift ban on import of Iranian carpets, Nepalese carpet needs backing and support from government to compete with them.

Many were surprised to listen the statement from Prime Minister coming at a time when Nepalese carpet manufacturers were beginning to feel the long needed stability in production. "Definitely, it is stabilizing and the situation will further improve," said A.G. Sherpa, President of Central Carpet Industries Association (CCIA).

Kathmandu Valley has a favorable atmosphere for the carpet industries as it has certain production base and infrastructures. There needs to be an infrastructure base to shift the industry from one place to another.

Industrialists argue that the comment from Prime Minister will discourage the investors and industrialists. When Prime Minister is allowing plastic industries, what prompted him to speak against one of the major foreign earning industry is a matter of concern, said another industrialists.

At a time when low grade Indian carpets are entering Nepal to be exported to the third world country under the guise of Nepalese brands, removing the carpet industry out of valley may only benefit them.

As Kathmandu has all sorts of infrastructures and industrial base, Koirala's call to remove them out of valley will jeopardize the industries.