Officials of Nepal Pashmina Industries Association (NPIA) - an umbrella organization of Nepali pashmina producers and exporters - say such mechanism of funneling import and supply of wool -- one of the important raw materials of pashmina products -- will ensure uniformity in quality and also help cut cost.[break]
“We are in the process of registering a co-operative at Kathmandu District Co-operatives Office to institutionalize the concept of import wool in bulk,” Madhu Babu Adhikari, chief program officer of NPIA, told Republica.
This is not all. The association has said it would also mobilize the co-operative to explore the possibility of wool production within the country as well.
As of now, manufacturers of pashmina products have been importing raw materials on their own. But they have been importing in small quantity that too after receiving orders because of the lack of predictability in exports.
This was resulting to high procurement cost and also lack of uniformity in the quality of wool that they receive.
“Such practice has not only affected the quality of final products, but also raised the cost of production, contributing in the erosion of our competitiveness,” said Adhikari.
With the single procurement deal, he said the cost of wool will go down as bargaining capacity of the entrepreneurs will strengthen with the collective purchase.
The association took such a step as a part of its new strategy, which is aimed at assuring quality and establish ‘Chyangra Pashmina’ as a popular international trademark and brand. The NPIA has already registered Chyangra Pashmina as the trademark in more than two dozen major markets.
At present, pashmina manufactures consume a total of 200 tons of wool a year. Of them, around 160 tons are sourced from China, Mongolia, New Zealand and Australia.
NPIA is mulling over procuring wool from China and Mongolia by setting up a special contact point of the co-operative at the Chinese Embassy in Kathmandu.
According to global trade data, China dominates the world’s pashmina market with a market share of over 60 percent.
“Before initiating the purchase through the co-operative, we will establish an initial fund from our members,” Adhikari added.
A total of 182 active pashmina manufacturers and exports are under the umbrella of NPIA. They mostly export pashmina shawls, stoles, mufflers, scarves and blanket to Europe, North America and Asian countries.
Europe and America together hold about 90 percent share in Nepal’s pashmina exports, with each purchasing 60 percent and 30 percent of total exports respectively. Asian countries like Japan and South Korea make up 10 percent of Nepali pashmina market.
Nepal had exported pashmina products worth Rs 5.28 billion in fiscal year 2000/01. However, the export of pashmina -- the third largest exportable commodity after ready made garment (RMG) and woolen carpet -- has been affected in recent years due to political instability, quality concern by importing countries and the flooding of Indian and Chinese pashmina bearing ‘Made in Nepal’ tags in major markets.
Total annual export of Nepali products has dropped to about Rs 1.5 billion over the last couple of years.
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