Q1 handicraft exports up 9.93pc to Rs 1.3b

KATHMANDU, NOV 10 - 2012

First quarter handicraft exports were up 9.93 percent to Rs 1.30 billion year on year. According to the Federation of Handicraft Associations of Nepal (FHAN), Nepal exported handicrafts worth Rs 1.18 billion during the period mid-July to mid-October last year.

Despite an increase in exports, the rate of growth has dropped this year compared to the same period in the last fiscal year. Exports had grown 31.22 percent in Q1 in 2011 compared to the same period in 2010. FHAN president Bikash Ratna Dhakhwa said the growth was satisfactory as the first quarter of the fiscal year is usually a slow season for

handicraft exports. “Exports usually take off after October,” said Dhakhwa.

According to the federation, exports in the textile segment grew 6.26 percent while the non-textile segment increased 13.94 percent. A surge in the export of pashmina and metal crafts contributed greatly to the rise in handicraft exports in Q1. Exports of pashmina and felt products in the textile segment registered a growth of 77.14 percent and 22.39 percent respectively. “Growing publicity in the international market of the collective trademark Chyangra Pashmina has definitely helped to boost exports,” said Dhakhwa.

Meanwhile, exports of metal craft also registered an impressive growth of 36.33 percent to Rs 299.76 million in the first three months this year. According to FHAN, there is growing demand for sacred images mainly in China and the European market. However, the rest of the handicraft products witnessed a fall in exports. Woollen goods, silk products, hemp products, Dhaka products and silver jewellery recorded a decline in exports. Exports of silk products and silver jewellery plunged 64.09 percent and 34.13 percent respectively,

the largest fall in exports among handicraft items. Similarly, exports of woollen products, which has a market share of 19.6 percent, also fell around 6 percent.

Likewise, exports of handmade paper products, which saw a growth of more than 32 percent in the last fiscal year, plunged 18 percent to Rs 113.53 million in Q1. Dhakhwa said growing use of substandard raw materials in the name of Nepali paper could be the reason behind its declining exports. Exports of handicraft goods, which are one of the major exportable products of the country, amounted to

Rs 4.11 billion last year. Dhakhwa urged the government to provide cash incentives and refinancing facility to promote the sector.

Source: The Kathmandu Post

Handicraft exports up 32.31%

KATHMANDU, Aug 12, 2012

Exports of handicraft items increased by an impressive 32.31 percent in the last fiscal year, compared to export figures of 2010/11, thanks to better promotion of Nepali handicraft in international market and strengthening of US dollar vis-à-vis Nepali rupee.
According to Federation of Handicraft Associations of Nepal (FHAN), Nepal exported handicraft items worth Rs 4.11 billion in 2011/12, up from Rs 3.11 billion recorded in the previous fiscal year.

The country exported metal products worth Rs 927.74 million - a rise of 36.57 percent compared to figures of 2010/11 when the country had exported metal products worth Rs Rs 679.32 million.

Metal craft was the country´s major exportable handicraft items during the review year, contributing to around 22.54 percent of the total handicraft export.
Bikash Ratna Dhakwa, president of FHAN, said Nepal´s handicraft exports increased due to growing participation of Nepali handicraft producers in international trade fairs and due to the appreciation of US dollar against Nepali rupee. “Demand for metal products has been growing in China and European countries since past few years,” said Dhakwa.

According to FHAN, export of textile products increased by 33.99 percent to Rs 1.92 during the review year, up from Rs 1.43 billion recorded in 2010/11. Similarly, exports of non-textile goods increased by 30.86 percent to Rs 2.19 billion in 2011/12 from Rs 1.67 billion recorded in the previous fiscal year.
Woolen goods and felt products stood at second and third position in terms of export earning, recording a rise of 43.11 percent and 25.98 percent respectively compared to 2010/11. The country exported woolen products worth Rs 708.94 million and felt products worth Rs 474.84 during the review year.
Similarly, exports of pashmina increased by 10.89 percent, silk products by 79.11 percent, cotton goods by 53.59 percent, hemp goods by 49.18 percent and allo goods by 90.74 percent. However, exports of Dhaka products fell by 17.29 percent.

In the non-textile category, export of handmade paper products increased by 32.26 percent, wood craft by 53.87 percent, glass products by 211.68 percent, bone and horn products by 52.75 percent, ceramics products by 15.26 products, leather goods by 16.38 percent and incense by 42.18 percent.
Exports of bead items and thangka paintings increased by a whopping 289.14 percent and 90.46 percent respectively. Export of plastic items recorded nominal rise of 1.55 percent.

“The demand for beads products is increasing mainly because of growing demands for bags and jewelries made of beads in US,” said Dhakwa.
Exports of silver jewelry, crystal products, and bamboo products went down in the non-textile category during the review year, according to the report.
US (Rs 1.20 billion) was the largest market for Nepali handicraft during the review year, followed by Germany (Rs 364.33 million) and Tibet (Rs336.99 million).

Source: Republica

Trade deficit with China higher than overall rate

KATHMANDU, APR 28, 2012
Nepal’s trade deficit with China is growing faster than the country’s overall trade deficit, said South Asia Watch on Trade Economics and Environment (Sawtee).

According to a study conducted by Sawtee, the trade deficit with China has been growing at an average rate of 27.1 percent annually over the last seven years while the overall trade deficit has increased by 21.9 percent.

In the seven years since 2003-04, China’s share in Nepal’s global export and import has diminished to 1.4 and 11.7 percent respectively. This shows that Nepal’s exports to China have decreased by an average of 3.1 percent annually during the period. Likewise, the country’s imports from the northern neighbour has been increasing by an average of 3.6 percent annually over the same period. Earlier in 2003-04, China’s share in Nepal’s total exports and imports was 4.5 and 8.1 percent respectively.

The research study carried out by Tula Raj Basyal, former senior economic adviser to the Finance Ministry, blames various non-tariff barriers for the lower exports despite the special preferential tariff treatment for 4,721 products. “The value addition requirement of 40 percent is one of the major non-tariff barriers,” said the report. According to experts, a criterion of 40 percent value addition is unreasonable for an LDC like Nepal given its industrial capacity. “With our industrial structure and capacity, it is difficult to produce goods with 40 percent of value addition,” said Ratnaker Adhikari, an international trade expert. “Trade barriers in China like quarantine are pretty unpredictable.”

The report also attributes the deeper constraints in the supply capacity like reduced production and limited exportable surplus for Nepal’s growing trade deficit with China. It also blamed other factors including delays and higher transportation costs, delivery complexities like hassles at customs points, rising uncertainties and non-transparency of quarantine requirements, production of lower appealing items both in price and quality, and the government’s apathy towards improving trade relations.

The report recommends expanding production of products having higher value addition and possessing higher export potential to China. As per the report, vegetables, tea, iron and steel products, herbs, lentils, ghee, ginger, aluminium products, handicraft items and ornamental ceramic products, among others, have a higher market demand in China, and the export of these products should be increased.

The report has also recommended that the government ensure necessary infrastructure like roads, transport arrangements, container yards, quarantine facilities and technological improvements to minimize the trade deficit.

Tanka Karki, former Nepali ambassador to China, said that Nepal could benefit immensely from China if it promoted Buddhism and trade. He said the government should try to increase Chinese aid to Nepal and  encourage the Nepali private sector to work in cooperation with Chinese investors to invest in Nepal.

Source: Kantipur