“Going against the spirit of the agreement on providing zero tariff to Nepali products including carpet, Chinese officials are imposing around 80 percent customs duty on Nepali carpets. Such move by the Chinese government for the last few months has driven up the price of our carpet in the Chinese market,” Gopal Krishna Joshi, former vice president of Central Carpet Association told Republica on Saturday.[break]
He said excessive customs duty weaken the competitive power of Nepali carpets compared to rival products available in the world´s second largest economy.
On the back of persisting slowdown in Europe and other western markets exporters had heaved a sigh of relief following increased demands for carpet from China.
“Growing demands from China for our carpets had given a new lease of life to the ailing carpet industry, which has been witnessing slowdown amid declining demands from Western countries. But, the latest move of Chinese customs officials has made us hopeless,” Joshi added.
According to the data compiled by Trade and Export Promotion Center (TEPC), total export of carpet declined by 19.5 percent during the first four months of the current fiscal year. Carpet worth Rs 18 billion was exported to different countries during the review period, down from Rs 22.35 billion recorded during the corresponding period last year.
He said carpet factories had increased the production by over 20 percent compared to the volume last year´s same season hoping that the demands from major destinations would improve.
“Producers and exporters are struggling to find market for Nepali carpets though they have increased production this year,” he added.
In an effort to promote the carpet in the European markets, around 20 Nepali exporters are taking part in Demotex in the German City of Hannover after two weeks. The annual event is being organized on January 12-15.
“Nepali exporters are eagerly awaiting response from buyers in the fair which would determine prospects for the coming year in European markets,” he further added. Around 1,400 exhibitors from 60 countries will be participating in one of the largest fair in the world to promote carpets, rugs and textiles products.
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