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Ministry of Commerce And Supplies - Enhanced Integrated ...

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N T I S20109) Silver JewelryBackgroundNepali silver jewelry is completely handmade using traditional processes. Unique pieces <strong>of</strong> artistic work anddesign are based on cultural, ethnic, and religious motifs. Since ancient times, Nepalese craftsmen <strong>of</strong> theShakya and Sunar families have produced pieces <strong>of</strong> gold and silver jewelry in different parts <strong>of</strong> the country.Commercial production and trading activities are mainly located in Kathmandu valley in the districts <strong>of</strong>Lalitpur, Bhaktapur, and Kavre and in Janakpur. Export <strong>of</strong> silver jewelry has remained quite stable for the pastthree years (2006/07 to 2008/09) with an average annual export value <strong>of</strong> US$5 million. 58 Import figures fromdestination countries suggest that exports are even higher (US$9.5 million in 2008). Industry sources put thefigure even higher, at around US$15 million.Index 1: Export PerformanceTable 2.31Export Value <strong>of</strong> Silver Jewelry, 2005-2009 (US$1,000)2005 2006 2007 2008 20098,312 8,588 9,774 9,519 n/aSource: TradeMap (mirror data).Notes: Products covered are 7113.11/19 and 7117.19/90. Most exportsare silver jewelry (7113.11). Above fi gures were used for the calculation <strong>of</strong>indicators.Types <strong>of</strong> Exported Products: Several types <strong>of</strong> silver jewelry having unique and <strong>of</strong>ten religious or ethnic designsare exported.Current Export Destinations: Official exports mainly go to the USA, Canada, and several EU markets. Thereare practically no <strong>of</strong>ficial import <strong>of</strong> silver jewelry registered by India, but it can be assumed that export to Indiaexist and is done informally.Potential Export Destinations: According to producers and traders, potential for future export is seen in Korea(South), China, Russia, and South Africa. Hong Kong, USA, and several EU markets have been identified asattractive markets by ITC’s calculations (see below).Nepal’s World Market Share: Nepal’s world market share is around 0.2 per cent.Trade Balance: Very little import <strong>of</strong> jewelry is recorded. However, according to industry sources, import <strong>of</strong>raw materials, in particular silver, accounts for roughly 50 per cent <strong>of</strong> the export value. Nepal imported silverworth US$10.3 million in 2008, some <strong>of</strong> which will have been used in the jewelry industry.Dynamism <strong>of</strong> Exports: Export has been fairly stable in recent years.Export Prospect: Prospect for future export is generally seen as very good. The recent political instability andconflicts between employers and workers have left the sector largely unaffected. Also, production costs arecompetitive and workers are readily available.58Trade and Export Promotion Centre, Nepal Foreign Trade Statistics, 2009 (provisional).NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT69

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