Kathmandu, December 12

Domestic carpet manufacturers have sought hike in export incentives through the supplementary budget to make Nepali carpets price competitive in the global market.

They have said that the incentives offered in carpet exports should be increased to double digits from existing two per cent, as Nepali carpets are lagging due to high price in the foreign market.

“Indian and other foreign brand carpets are up to 30 per cent cheaper compared to Nepali carpets because production cost of Nepali carpets is high,” Anup Bahadur Malla, chairman of Export Promotion Committee of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) said, adding that the only mean to make Nepali carpets more competitive in the global market is by bringing down the price by increasing export incentive.

Though domestic carpets have been identified as one of the export products with competitive advantage by Nepal Trade Integration Strategy (NTIS), Malla said that export of Nepali carpets dropped by 6.8 per cent in terms of value in the first three months of fiscal year 2016-17 compared to the same period of 2015-16.

While Nepali carpets of Rs 2.22 billion was exported to the international market in the first quarter of last fiscal year, only Rs 2.07 billion worth of carpets have been exported in the same period of this fiscal year.

Data shows that export of Nepali carpets have dropped by more than 20 per cent in terms of quantity in the first three months of this fiscal year. While Nepal exported 170,000 square metres of carpet in the first three months of 2015-16, only 133,000 square metres of Nepali carpets were exported during the same period of 2016-17.

“Incentives in carpet export are up to 15 per cent in neighbouring countries like China and India because of which their products are comparatively cheaper,” said Malla. “Though we produce best quality carpets, customers choose other brands of carpets due to high price of Nepali carpets.”

Carpet is one of major exportproducts of Nepal. Nepal exported carpets worth Rs 8.6 billion in 2015-16. Manufacturers say Nepali carpets have high demand in the US, western Europe and Australia. Meanwhile, manufacturers have also said the government should introduce programmes and policies to brand Nepali carpets effectively in the international market.

“Export of all potential Nepali goods, including carpets is plummeting after the earthquake and blockade of last year. The government and private sector together should take up effective marketing of Nepali carpets in the international market,” Chhring Sherpa, president of Central Carpet Industries Association (CCIA) said. Moreover, CCIA has urged the government to mark 2017 as ‘Export Year’ and promote all Nepali goods and services in the international market.