Addressing the ninth annual general meeting of NCEA, the organization’s president Anup Bahadur Malla said Nepal’s carpet exports have fallen to about 600,000 metres at present from about 3.3 million sq m exports in the early 1990s.

 

Explaining the reason for drop in carpet exports from Nepal, Mr. Malla said the price of Nepali carpets in the international market is higher compared to Indian and Chinese carpets.

 

Nepali carpets are becoming expensive in global markets due to increase in cost of imported raw materials, rise in labour cost and lack of subsidies provided by the Government, he added.

 

He suggested that the Nepali Government reduce the tax by placing the carpet industry under the cottage and small scale industries, as it existed prior to 1998. He also pleaded for complete tax exemption on carpet exports.

 

Stating that the Nepali carpet industry at present provides jobs to around 100,000 people, directly or indirectly, he urged the Government to introduce a policy to retain foreign job migrants to minimize the labour cost.

 

Mr. Malla said the Indian and Chinese carpets are about 30 percent cheaper than the Nepali ones, and hence the Government should reduce taxes and give subsidies to enable the Nepali carpet sector to compete in the international market.

 

Ram Sharan Mahat, who recently took office as Nepal’s Minister of Finance, gave assurance that the Government would try its best to promote the country’s exports.