Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S201011) Chyangra Pashmina ProductsBackgroundPashmina, now commonly known in Nepal as Chyangra Pashmina, is a fine hair fibre from the inner downcoat of Capra Hircus, a mountain goat called ‘Chyangra’ in Nepal, which inhabits the Himalayas in areas above2,300 m. 69 The fibre is well known for its uniform quality and fineness. It is soft, warm, and very light. Itis sometimes called ‘Diamond Fibre’ or ‘Soft Gold of High Asia’. Pashmina products, such as shawls, areusually produced using a blend of Pashmina and the cheaper silk yarn. Exports of Pashmina products likeshawls, stoles, blankets, sweaters, and other accessories boomed in the late 1990s to record high level ofUS$80 million in 2000/01, but then declined again to around US$22 million in 2008. A major reason for thedecline is seen in increased competition from other countries, which often use cheaper imitation materials.ITC published an extensive study on the sector in 2007. 70Index 1: Export PerformanceTable 2.38Export Value of Pashmina Products, 2005-2009 (US$1,000)2005 2006 2007 2008 200919,091 15,530 15,790 22,074 n/aSource: TradeMap (mirror data). Data covers products 6214.10/20/90 and6301.20.Types of Exported Products: The main products are Pashmina shawls, but also other items such as blankets.Current Export Destinations (share of exports): The main markets for Pashmina shawls are the EU (61 percent), USA (12 per cent), India (9 per cent), and Japan (7 per cent), which together account for 90 per cent ofexports.Potential Export Destinations: Fast-growing markets are China and UAE. According to industry sources, otherpromising new markets are Russia and South Africa.Nepal’s World Market Share: Nepal’s share for the major product (6214.20, shawls of fine animal hair),is around 3 per cent. However, the world market share is difficult to assess using trade data because therelevant product codes cover not only Pashmina products but also other products . China, Mongolia, India,and Pakistan are also large producers of cashmere, which is similar to Chyangra wool.Trade Balance: There are negligible recorded imports of such products. Raw materials have to be imported,such as silk and dyeing materials. Annual imports of silk and silk products, at least some of which will be usedin Pashmina production, are around US$4-5 million.Dynamism of Exports: Exports have been relatively stable over the last four years (see data above). However,they are lower today than in the late 1990s, when they were reported to be about US$80 million per year.69“Chyangra Pashmina” is similar to other fine animal hairs like “Cashmere”, “Merino”, “Alpaca”, and “Mohair”. During the early 2000’s, theword “Pashmina” was often misrepresented in the western markets by a low-value shawl woven out of cheap materials like acrylic or viscoseyarns.70ITC (2007b). Chyangra Cashmere and Silk Products – Export Performance and Potential. ITC, Geneva.80NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT