Carpet export earnings increase 20% to US$ 40.8million

[parakhi]

http://www.parakhi.com/news/2012/03/03/carpet-export-earnings-increase-20-to-us-40-8million

March 3, 2012 Posted By : parakhi

According to the Trade and Export Promotion Centre (TEPC), Nepali carpet export earnings increased by 20 percent in the first seven months of the current fiscal year to US$40.8 million but the volume of carpet exports dropped by 8.7 percent compared to last year. Entrepreneurs cited increase price of Nepali carpets for the increase in earnings but are worried about the decreasing volume.

TEPC reported that Nepal exported 366,974 sqm of carpets compared to 402,035 sqm during the same period last year. According to carpet exporters, the economic crisis in European countries led to decrease in export volume as the EU market is the major buyer of Nepali carpets. Higher production costs have also made the Nepali carpets more expensive compared to Indian carpets and the price of Nepali carpets are now 30 percent more than last year.

While, low and medium-priced carpets find major buyers in Europe, the US market favors high-priced carpets. Nepal Central Carpet Association (NCCA) reported that the demand for high-end carpets is increasing in the US. Nepal’s carpet industry used to export carpets worth Rs 10.4 billion a decade ago but child labor issues has troubled the industry since then. In 2010, it had managed to export only Rs 5 billion worth of carpets.

image source: ipsnews.net

news source: The Kathmandu Post

http://www.parakhi.com/news/2012/03/03/carpet-export-earnings-increase-20-to-us-40-8million

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