Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010Level of Processing Technology: Shawls are woven on handlooms or power looms using a blend of silk andPashmina yarns. Looms range from very small hand-held frames to large free-standing handlooms or powerlooms.Cost and Quality of Infrastructure: The overall cost of infrastructure is low. However, high costs of electricityand transport are reported to be a particular burden for producers.Efficiency of Domestic Supporting Industries: About 400 MT of Pashmina and 200 MT of silk yarn are requiredannually and imported from China and Mongolia. However, there are only two modern yarn dyeing plants.Further dyeing facilities would be needed by small weavers and knitters who do not have their own dyeingfacilities. Many small operators are selling grey Pashmina shawls to exporters for further dyeing, processing,and finishing depending on the buyers’ specific requirements.Domestic Demand: The domestic market for Pashmina shawls is about 10-20 per cent of the totalproduction.Business Environment: The quality of communication and air freight services are considered to be verygood.Government Initiatives and Donor Involvement: Pashmina is one of the priority export products identified inthe Government’s recent Commercial Policy 2009. The Government has already supported Nepal PashminaIndustries Association to arrange registration of ‘Chyangra Pashmina’ with a graphic trademark in majormarkets. 75 Other government policy initiatives include Pashmina goat farm development in potential districtsto establish a long-term source of raw materials, setting up of Pashmina yarn and product testing laboratoryfacilities, human resource development for production and marketing activities and design development. Inthe past, Asia Invest supported NPIA in organizing buyer-seller meetings, training and strengthening of theorganizational capacity.Prospect for Domestic Supply Conditions: Chyangra can survive at altitudes above 2,500 m. More than 35per cent of the country’s total land surface is mountainous and about 50 per cent of this surface is covered bysnow. This condition offers unique prospect for developing and commercializing Chyangra products in Nepal.About 12 per cent of land surface of the country is already covered by grass suitable for pasture. Moreover,further pastureland development in mountain areas is possible. 76 The main districts where Chyangra goatsare being raised are Mustang, Manang, Humla, Jumla, Mugu, and Dolpa. There is long-run prospect fordeveloping Pashmina as well as silk production within the country to assure a permanent source of qualityraw materials for export growth.Index 4: Socio-economic ImpactCurrent Employment and Job-Creation Prospect: It is estimated that currently 5,000 people are gettingfull employment from the Pashmina business in Nepal. According to producers, if a favourable businessenvironment prevails, Chyangra farming is started and external market demand is revived, the presentproduction can easily be doubled without much investment and efforts and, thereby, additional employmentcan be created for up to 5,000 people.75According to Nepal Pashmina Industries Association (NPIA), as of October 2009, applications for registration of collective trademark “ChyangraPashmina” has been already approved by the USA, Japan, Australia, and Norway. Applications submitted to Canada, Brazil, Mexico, EU,Switzerland, Russian Federation, and New Zealand are under serious consideration. Among the Asian countries applications are submitted toThailand, China (including Hong Kong and Taiwan), Israel, Singapore, Japan, UAE, and Pakistan.76Ministry of Agriculture and Cooperatives, Statistical Information on Nepalese Agriculture 2004/05, Dec. 2005.82NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT