Kathmandu, February 7:

The fifth Leather Goods and Footwear Expo-2008 kicked off here today at the premises of City Hall in Kathmandu.

Speaker Subash Nembang inaugurated the expo which focuses at promoting domestic production and market exploration for the Nepali footwear. Organised by Leather Footwear and Goods Manufacturers’ Association of Nepal (LFGMAN), the event will last till February 12.

A wide range of leather goods including shoes, sandals, sport shoes, sneakers, bags, purses, jackets manufactured locally have been put on display-cum-sales under a single roof.

Nembang admitted the industrial sector was facing hardships due to load shedding, frequent strikes and fragile security situation in the country. He called upon the private sector to join hands with the government to stave the problems.

LFGMAN President Ram Krishna Prasai said the event was organised as a continuity to the previous events, which received huge response from the customers. He, however, noted that high customs duty on import of raw materials and the government’s inability to control illegal import of shoes had hit hard the Nepali industries.

Nepal Chamber of Commerce President Surendra Bir Malakar, said the power cut had crippled the industrial sector resulting in an unprecedented rise in cost of production. “This will make the domestic products certainly dearer and unable to compete with cheaper imports,” he said.

Nepal consumes about 14.5 million pairs of shoes and sandals annually. The current domestic production is estimated to be around 5 million pairs and it is growing every year by 15 per cent. Presently the production of leather party shoes and sport shoes has been a frontrunner in the footwear industry, while Nepal still depends on imports for high-end party shoes, lady’s sandals and sneakers, among others. The domestic production is largely targeted for middle and low middle class income groups. With an increased brand consciousness among the consumers, many Nepali footwear manufacturers have started using a common hologram for quality assurance and some of them also offer warranty on soles and sewing, according to LFGMAN. According to LFGMAN, Nepal consumes about 300,000 pieces of leather jackets and bags every year, whereas there is a demand of over 700,000 pieces of other leather goods like purses, wallets, diary covers and penholders.