Pages

Tuesday, February 21, 2012

Unsatisfactory performance of 'success story products'

Nepal´s priority export items, which are enlisted as success stories by the Enhanced Integrated Framework (EIF), an initiative of World Trade Organization (WTO), have not performed well in terms of export volume.

Ginger, tea and Pashmina products are included in Nepal Trade Integration Strategy (NTIS) - the government blueprint for export promotion - have been selected as model products in Nepal by the WTO stating that they have replicable performance and prospect for exports.

Statistics compiled by Trade and Export Promotion Center (TEPC) shows export of ginger, for which Nepal is the fourth-largest producer in the world, saw a whopping decline of 38.2 percent to Rs 281.94 million during fiscal year 2010/2011 compared to a year-ago period. Data shows export of ginger went up by 13 percent to Rs 456.01 million in 2009/2010 compared to a year-ago period. TEPC data shows India, Japan, USA, Pakistan, and the Netherlands are major importers of Nepali ginger.

Despite a double-digit growth in Pashmina exports, inconsistency in export volume, weak quality control, and nominal production of domestic raw material are still serious bottlenecks for Pashmina exports. Due to lack of brand awareness of Nepali Chyangra Pashmina in the international market, export volume couldn´t go up to the desired level.

Pashmina export went up by impressive 24.2 percent in 2010/2011 compared to a year-ago period. However, exports plummeted by whopping 27.6 percent during 2009/10 compared to a year-ago period. Nepali Pashmina is being exported mainly to Japan, France, Germany and USA.

Officials at the Ministry of Commerce and Supply (MoCS) admitted lack of effective mechanism to assure quality and high dependence on imports for necessary raw materials are major factors for uncertain prospects of Pashmina exports despite some positive developments in recent months.

“Though Nepali Chyangra Pashmina trademark has been registered, we still have a long way to go to win the trust of international buyers. Dependence on other countries for raw material is another problem in the Pashmina sector,” said Jib Raj Koirala, under-secretary at MoCS.

According to TEPC, tea export has gone up in 2010/2011 by 29.7 percent compared to a year-ago period. Export of tea declined by 3.7 percent in 2009/2010 compared to a year-ago period.

Officials however claimed performance of any product shouldn´t be judged on the basis of export volume alone.

No comments:

Post a Comment