Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010Gender Impact: Female workers and entrepreneurs have taken important roles in weaving, knitting, finishing,and packing activities. It is estimated that more than 75 per cent of the FTEE in the industry is occupied bywomen.Contribution to Skill Development: Traditional skills are passing through the younger generations, but furthertraining is required for quality improvement and product diversification.Impact on Development of Disadvantaged Regions: At present, export earnings are already trickling down tomany families in the four to five districts in and around Kathmandu valley. However, development of Pashminafarming and sericulture will have better impact on the development of remote regions of Karnali, Mahakali,Gandaki, Bagmati, Sagarmatha, and Kosi zones.Energy and Water Constraints: Pashmina washing and dyeing processes are highly water- and fuel-intensive.Most of the producers are located in areas having good access to water and fuel.Environmental Impact: Except for the possible chemical dyeing use, the Pashmina industry is consideredenvironmentally friendly. Some of the Pashmina factories have modern treatment systems to containpollution within the dyeing process.Market Attractiveness IndexEU markets are the most attractive markets for Pashmina products and also currently the main exportdestinations. Growth rates have been high in these markets, and there is a significant tariff advantage whichis even higher than it appears in the table. Compared to non-EU competitors such as China and India, Nepalhas an 8 per cent tariff advantage for this product.RankCountryTable 2.40Attractive Markets for Pashmina ProductsAttractive markets for Pashmina products (HS 6214.20)Top 10 - Weighted Market Attractiveness IndexExports Nepal World market(2008) shareGrowth rate(2004-2008)Tariff forNepalTariffadvantageMain competitors1 UK 2,338 6.2% 17.8% 0% 4% Italy, China, India2 Germany 2213 6.3% 15.5% 0% 3% Italy, China, India3 Spain 0 4.8% 16.4% 0% 3% India, Italy, UK4 France 3523 7.4% 8.3% 0% 2% Italy, UK, India5 Hong Kong (SARC) 19 4.2% 13.8% 0% 0% UK, France, Italy6 USA 1983 16.5% 8.4% 7% 0% China, Italy, UK7 Italy 1597 5.3% 6.9% 0% 3% UK, China, India8 Japan 1109 21.0% 1.6% 0% 2% China, Italy, UK9 China 51 2.0% 51.3% 14% 0% UK, Italy, France10 Switzerland 404 3.1% 14.7% 0% 0% Italy, Germany, FranceNote: HS 6214.20 (shawls of wool or fi ne animal hair), the major export item used as a proxy for all Pashmina products.NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT83