Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S20108) Handmade Paper and Paper ProductsBackgroundNepali handmade paper is a unique product made from the inner barks of Daphne Papysacea Wall and DaphneBholua Buch (Thymelaeaceae sp.) called ‘Lokta’ and also from a mixture of ‘Lokta’ and Argeli plant’s fibres. 44The traditional Tibetan paper-making technique was transferred and developed in Baglung district and otherparts of Nepal in the 7th century. 45,46 The paper is strong and durable and has an inherent natural resistanceto worms and insects. The raw paper is produced in more than 22 districts. 47 The production of finished paperproducts is done in Kathmandu valley and Janakpur. Such products include greeting cards, shopping bags,packing boxes, stationery sets, diaries and notebooks, folders, photo albums, wrapping papers, photo frames,curtains, wallpapers, table and ceiling lamps, wall paintings, etc. HANDPASS, the Handmade Paper Association,estimates that around 55,000 families earn a livelihood with Lokta collection and the production of handmadepaper and its products. 48 However, this work is usually on a part-time basis. The FTEE is estimated to bearound 8,000 workers.With estimated annual exports of around US$4 million, handmade paper is a niche product. It certainly has apositive socioeconomic impact, but its overall economic importance is relatively small.Index 1: Export PerformanceTable 2.28Export Value of Handmade Paper, 2005-2009 (US$1,000)2005 2006 2007 2008 2009n/a n/a n/a4,000(estimate)n/aThere is no reliable data on export of finished Lokta paper products because there is no distinction between theproducts made of normal paper and those made of Lokta in trade statistics of importing countries. Estimatesof the total export value of finished Lokta products vary. HANDPASS, the handmade paper association,estimates that annual exports are worth US$4 million. 49 In the absence of reliable estimates over severalyears, exports of HS Code 4802.10, which accounts only for raw Lokta paper (‘Paper, handmade, uncoated, inrolls or sheets’), is used for the calculation of export growth rates. These exports have been slowly decliningfrom US$734,000 in 2005 to US$531,000 in 2008.Types of Exported Products: Both handmade paper and finished products made of handmade paper areexported (such as notebooks, lampshades, etc).44These plants grow well at elevations ranging from 1,500 to 3,000 m, Department of Plant Resources, “Medicinal Plants of Nepal”, Bulletin No28, 2007, p. 46 and 239.45Bibendra Prasad Singh, Nepali Paper Industry, Lokta: An Introduction, SMARIKA, HANDPASS, 2062, p. 1.46Jesper Tier, An Introduction to Handmade Paper in Nepal, Ancient Paper of Nepal, Nepal Handmade Paper Association, SMARIKA, 2062, p. 5.47These 22 districts are: Aachham, Baglung, Bajura, Bajhang, Bhojpur, Dailekh, Dolakha, Gorkha, Ilam, Jajarkot, Myagdi, Okhaldhunga,Panchathar, Parbat, Ramechhap, Rolpa, Rukum, Sankhuwasabha, Sindhupalchowk, Solukhumbu, Taplejung, and Terahthum.48Nepal Handmade Paper Association, Loktapatra, Vol 3, Issue 1, January 2009.49This is roughly in line with an estimate by Bhishma P. Subedi et al (Handmade Paper Value-Chain in Nepal, 2006). They estimate that totalvalue-added of the industry is around US$6 million, not all of which goes into export.64NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT