UAE registers 347pc increase

Kathmandu, January 2:

Export of handicraft products has increased by 11 per cent amounting to Rs 2.84 billion in the fiscal year 2004-05 despite increased inflation and conflict in the country.

Businesspersons said this at the 26th Annual General Meeting of Handicraft Association of Nepal (HAN).

Pancha Ratna Shakya, president of HAN, speaking at the meeting said, “The addition of 16 products to the export basket has resulted in a 11 per cent rise in export, while the export of five other products have been discontinued during the year.”

Handicrafts products exported to United Arab Emirates, Hong Kong and Tibet went up by 347 per cent, 95 per cent and 70 per cent respectively in the same year, he added.

Shakya urged the government to resolve the contradictions between Cottage Industries Ordinance 2005 and the 20 year-old Industrial Enterprises Act about whether the cottage industries would have to pay tax to the government.

“Income generated from exports should not be taxed. The products to be displayed at international business fairs should be allowed to be taken without any collateral for which there is a need for amendment in the policies and Act,” he added.

“Keeping in view the diverse markets in different countries, there is a need for Product Market Strategy,” he said. The concept to encourage exporters exporting handicrafts products worth more than Rs 0.5 million and help them find new markets should be considered, he added.

Buddhi Man Tamang, minister for industry, commerce and supplies, while addressing the meeting said that since Nepal has entered WTO and SAFTA-market oriented economy, handicrafts entrepreneurs should focus on bringing out quality products to compete in the international market.

Chandi Raj Dhakal, president of Federation of Nepalese Chamber of Commerce and Industries (FNCCI) said, “Handicrafts industries need to come up with innovative ideas to compete in the international market and take benefit of the World Trade Organisation and the South Asia Free Trade Area (SAFTA).”

Rajesh Kaji Shrestha, assistant minister for industries, commerce and supply, said the government will support the export of handicrafts products and will work to fulfil the 12 point agenda of the government.

Tamang also felicitated the best entrepreneurs, best artistes and the best exporters of the year.