KATHMANDU: Prime Minister Balendra Shah has pledged that the government will respond to calls from industrialists and businesspeople to expand international markets for Nepali products.
PM Shah made the remarks at a meeting on Friday with representatives of the Nepal Plywood Manufacturers Association, Nepal Carpet Manufacturers and Exporters' Association (NCMEA), Nepal Pashmina Industries Association (NPIA) and Nepal Dog Chew Manufacturers Association. He said the government was ready to facilitate the business community and address its concerns.
NCMEA president Balram Gurung told the meeting that the carpet manufacturing and export sector had been hit by new US regulations, a key market alongside European countries. He said a mandatory US Consumer Product Safety Commission verification requirement, which came into effect on July 8, had halted Nepal’s exports because the country lacked the necessary facility. He asked the government to seek a year-long grace period before the next provision takes effect.
Gurung requested that the Ministry of Foreign Affairs send a diplomatic note to the US Customs Department seeking the grace period; PM Shah immediately instructed the ministry to do so. Gurung also urged timely quarantine certification for raw materials imported for carpet production, saying businesses had been required to obtain wool certification three times a month. Shah directed the relevant bodies to reduce this to twice a week.
The prime minister’s secretariat said Shah had responded positively to calls for the constitution of a Carpet Development Board. He also said the government would support sheep rearing in Karnali and Sudurpashchim provinces to boost mutton and wool production.
Nepal Plywood Manufacturers Association Chairperson Hom Prasad Ghimire said legal hurdles were creating challenges for the sector despite Nepal’s higher-quality plywood compared with some imports. He said veneer was being exported to India at very low customs rates despite substantial domestic investment in plywood factories. Shah said the government was working to discourage the export of raw materials by increasing export tariffs.
Likewise, NPIA President Dhan Prasad Lamichhane called for local level wool and silk collection and the establishment of provincial processing centres; PM Shah said he would facilitate this. Resham Bahadur Pokhrel, chair of the Nepal Dog Chew Manufacturers Association, said legal bottlenecks had prevented manufacturers from producing and exporting dog chews and asked that dog chews be reclassified as pet food rather than dairy products, and that imports of skimmed milk powder for manufacturers be eased. The prime minister said the government would study the issue and take action where appropriate.
