Laxmi Capital News
Tea, coffee top country’s exports list

The export of tea, coffee, mate, and spices jumped 36.5percent to Rs 6.5 billion in the first eight months of Fiscal Year 2017/18 ascompared to statistics of last year to top the list of Nepal's exports. 

According to data from the Department of Customs, exportof tea, coffee, mate, and spices fetched the country Rs 4.7 billion in firsteight months of the previous fiscal year -- FY2016/17. Collectively, tea,coffee, mate, and spices was Nepal's second most exported items in the firsteight months of FY2016/17.

"The surge in demand for tea in India as well asother international markets, as a result of the five-month Gorkhaland riots inDarjeeling, is the chief contributor to the hike in export of tea from Nepal,"said Suresh Kumar Agrawal, president of Nepal Tea Planters Association (NEPA).
According to Agrawal, nearly 15 million tons of tea, including both orthodoxand CTC tea, is exported from Nepal every year. "While the export volumeof CTC tea is nearly double that of orthodox tea, the export value of orthodoxtea is higher by nearly a third," he added.

While tea entrepreneurs cite the rise in export of theirproduct to political instability in pocket areas for tea production in Indiasuch as Darjeeling, coffee exporters boast of superior quality of Nepali coffeeto be the key reason behind the increased demand and export. 

"Nepali coffee is among the best in the world. Asper the US-based Specialty Coffee Association, a majority of coffee produced inNepal scores above 85 in the coffee index, which is rare and among the finestin the world," Shyam Prasad Bhandari, chairperson of Nepal CoffeeProducers Association, told Republica. "As Nepali coffee is gettingrecognized across the world, its demand has been soaring and so is its priceand export."

Bhandari further added that while the demand for coffeein the international market is increasing, entrepreneurs have not been able toraise their production accordingly. He and stressed that the government shouldcollaborate with private parties to help increase production. 

Meanwhile, hand-knotted carpet, which was the country'slargest exports in the last fiscal year, dropped to third place in the firsteight months of FY2017/18. The export value of carpet and textile floor fell by9.5 percent to Rs 4.6 billion in the review period of FY2017/18.

The country exported hand-knotted carpet and textilefloorings worth Rs 5.1 billion in the first eight months of the previous fiscalyear -- FY2016/17. 

Speaking with Republica, Ram Bahadur Gurung, president toNepal Carpet Exporters Association, stated that the fall in export value ofcarpet is because Nepali handmade carpets are expensive and that these productshave not been able to compete with cheaper Indian, Chinese and Turkishalternatives. 

"We have neither been able to promote our productsas much as our neighboring countries, nor we have adequate manpower to increaseproduction. This has caused delay in production and ultimately delivery ofproducts to our clients," Gurung added. 

He also said that provision of concessional loan wouldhave made things much easier for carpet producers.

Trade and Export Promotion Centre (TEPC) is currentlyproviding carpet weaving training to 450 youths.

Gurung demanded that the government increase frequencyand scope of such trainings to increase carpet production.

Source : My Republica, 26th April 2018

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