A STUDY ON

EXPORT TRENDS OF NEPALESE PASHMINA

Submitted By
Manish Basnet
Roll no:7360049
Tu Regd No: 7-2-262-58-2016
Jhapa Campus

SUBMITTED TO:
Faculty of Management
Tribhuvan University
Jhapa Campus

In partial fulfillment of the Requirements for the Degree of

Bachelor of Business Studies (BBS)

Damak, Jhapa
Jan 1, 2021

i
 Declaration

I hereby declare that the project work entitled " A STUDY ON EXPORT TRENDS OF
PASHMINA" submitted to the Faculty of Management, Tribhuvan University,
Kathmandu is an original place of work under the supervision of Mr. Jiwan Magar,
faculty of management, Jhapa campus, Jhapa, Damak and is submitted in partial
fulfillment of the requirements for the award of the degree of Bachelor of Business
Studies (BBS). This project work report has not been submitted to Tribhuvan University
for award of Bachelor of Business Studies (BBS) Degree.

Signature
………….
Manish Basnet
Jan 1,2021

ii
 ENDORSEMENT

We hereby endorse the project work report entitled “EXPORT TRENDS OF

NEPALESE PASHMINA IN NEPAL” submitted by Manish Basnet of Jhapa Campus,
Damak, in a partial fulfillment of the requirements for award of the Bachelor of
Business Studies (BBS) for eternal evaluation.

Signature: Signature:
Mr. Jiwan Magar Manish Basnet
Management Research Committee Jhapa Campus
Date: Date:

iii
iv
 SUPERVISOR'S RECOMMENDATION

The Project report entitled " EXPORT TRENDS OF PASHMINA IN NEPAL " of Jhapa
Campus, damak-13, Jhapa is prepared under by my supervision as per the procedure and
format requirement laid by the faculty of management Tribhuvan University as partial
fulfillment for the requirement of award of Degree of Bachelor of Business Studies
(BBS). I therefore, recommend the project work report for evaluation.

Signature
Jiwan magar

v
 ACKNOWLEDGEMENT

The project work entitled "Export of Nepalese Pashmina from Nepal" is carried out to
the partial fulfillment of the requirements of the Bachelor of Business Studies Program
of faculties of Management, Tribhuvan University.

I would like to express my gratitude and sincere thanks to the staff of Nepal Pashmina
Industries Association, Handicraft Association Nepal, Pashmina Udhyog. Accordingly I
would like to express gratitude to Department Chief and my subject teacher who were
given to me a valuable guidelines at different phases with suggestion and
recommendation during preparation of this report.

I also like to express my sincere thanks to my friends who give me suggestion and
advice while preparing this field report.

Thank you,

Manish basnet
BBS IV Year
Jhapa Campus

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 TABLE OF CONTENT
Title Page I
Declaration II
Recommendation III
Endorsement IV
Abstract V
Acknowledgement VI
Table of Contents VII
List of tables VIII
List of Figures IX
Abbreviations X
Page No.

CHAPTER - I
INTRODUCTION
1.1 Introduction of Pashmina 1
1.1.1 Historical Background of Nepali Pashmina 2
1.1.2 Importance of Nepalese Pashmina 3
1.2 Problems of Nepalese Pashmina Industry 5
1.3 Objectives of the Study 7

CHAPTER II
LITERATURE REVIEW
2.1 Conceptual Review 8
2.1.1 Concept of Marketing Position 8

CHAPTER III
RESEARCH METHODOLOGY
3.1 RESEARCH METHODOLOGY 10
3.1.1 RESEARCH DESIGN 10
3.1.2 NATURE AND SOURCES OF DATA 10
3.1.3 DATA COLLECTION TECHNIQUE 10
3.1.4 DATA ANALYSIS TOOLS 11
3.2 Limitation of the Study 11

CHAPTER - IV
DATA PRESENTATION AND ANALYSIS
4.1 Total Export and Export trend of Nepali Pashmina 12
4.2 Export Pashmina of the current Fiscal year 15
4.3 Comparision of Pashmina with other Handicraft Goods 17
4.4 Diminution Condition 19

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CHAPTER - V
RESULT AND ANALYSIS
5.1 DATA PRESENTATION 23
5.2 DATA ANALYSIS 24
5.3 DISCUSS FINDING 26

viii
 LIST OF FIGURES
Page No.
Figure 4.1: Expert Trend of Pashmina..................................................................................13
Figure 4.2: Country wise export of Pashmina goods from
Nepal……………………………..11
Figure 4.3: Monthly Export of Pashmina..............................................................................16
Figure 4.4: Ration of Handicraft Goods................................................................................18
Figure 4.5: Comparison of Pashmina and other Handcraft Goods.....................................19
Figure 4.6: Position of Regular Export Country........................................................................21

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 ABBREVIATION’S

BS - Bikram Sambat

FY - Fiscal Year

HAN - Handicraft Association of Nepal

KPA - Krishna Pashmina Arts

Ltd - Limited

NPIA - Nepal Pashmina Industries Association

Pvt - Private

Rs - Rupees

UAE - United Arab Emirates

UK - United Kingdom

USA - United States of America

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CHAPTER - I

1
 INTRODUCTION

1.1 Introduction of Pashmina

It is a matter of proud that with the topics of "Pashmina Product" in Nepal and is
pleased to bring this report writing. "Exports of Nepalese Pashmina from Nepal" with
name and address of major manufacturer and exporters aimed at fulfilling some of the
information need of related communication and other at home and abroad.
Pashmina product is one of the leading export items of Nepal. They have made an
outstanding contribution in introducing Nepal to the rest of the world and played a key
role in uplifting the economic level of the Nation. Nepal the Himalayan Republic country
declared after the Shah Dynasty of 240 years trend. Ecologically the country is divided
into three regions running east to west i.e, the mountain, the Hill and the Terai, the
Mountain area lies at an altitude ranging from 4877 Meter to 8848 Meter above the sea
level. Most of the high snow capped mountains, including the world's highest Peak MT.
Everest are located in this region.

The world Pashmina derived from Nepalese word Pashmina that means softest and
warmest wool Pashmina is wool that grows on the under side of the mountain goats
derived from the word Chyangra the inhabitant of the great Himalayan mountain range
10,000 to 16000ft. and the sub Siberian latitudes of North Eastern Asia Nepal Each
cashmere shawl constitute the finest quality fiber chosen from the most well bred goats in
the Himalayas. Cashmere products are gloriously hands woven in traditional 100ms and
sensitive hands of craftsman's.

As the time passed the quality and varieties of Pashmina products have been improving
and increasing. For over a thousand years cashmere has been women into the shawls and
blankets prized by royalty majority of people like it most for it worldly softness warmth
and ling life durability, over the recent years this silk cashmere blend had become the
darling of the western fashion world and has won the heart of cashmere lovers all across
the world.

1.1.1 Historical Background of Nepali Pashmina

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 Handicraft has been valuable pat of Nepali heritage. They express the great
culture of Himalayan Kingdom. Now Nepal Pashmina plays an important role in
handicraft export. Until a century ago Pashmina certainly was not top exportable
handicraft. But 11/12 years ago Nepali Pashmina becomes a popular in Indian, European,
American and other 60 countries markets. Wool and silk are only two raw material used
in Pashmina are imported from China many years ago Nepal also imports few quantity of
Pashmina from Tibet for domestic use.

Before the industrial revolution all handcrafts products are hard made often in
home. In Nepal, Pashmina is not new business. In the early time Pashmina has been using
for limited option for example shawl sweaters. People at that time produce Pashmina for
their own use. After the industrial revolution science and technology had developed. New
technology and the new machinery, the Pashmina were produced in high level of quantity
with in a low cost of production. But the finishing of Machinery used Pashmina is low
quality. Then the handmade Pashmina that's why international market demands Nepali
hard made Pashmina. Thus, the export of Nepali Pashmina has been increased rapidly
within a short period but the terrorist attack 11 September 2001.

The goat sheds its winter coat every spring. One goat sheds approximately 80–170 g (3–6
ounces) of the fibre.

In the spring (the moulting season), the goats shed the inner wool, which regrows
in winter. The inner wool is collected and spun to produce cashmere. Today, the quality
of the cashmere produced in the Gobi Desert is often higher than that produced in the
Himalayas, due to a more consistent manufacturing process and increased modernization
of the Chinese. To reduce the cost and increase their competitive advantage, farmers sell
their cashmere below the cost price, which does not include the environmental damage
caused by millions of cashmere goats. Unlike sheep, the cashmere goat not only feeds on
the grass but also the roots of the grass. This desert forming is also responsible for the
yearly sandstorm in China's capital Beijing.

3
 Some people believe Pashmina from Nepal are the best in quality because of the
conditions to which the mountain goats have adapted over centuries. The high Himalayas
of Nepal have a harsh, cold climate and in order to survive, the mountain goats have
developed exceptionally warm and light fiber which may be slightly coarser and warmer
than cashmere fibers obtained from lower region goats. Nepali pashmina is called
Chyangra Pashmina. Ladakh pashmina is also similar to the Nepali pashmina as the
Ladakh pashmina is produced in similar high altitudes of chanthan on the India\China
border at Kashmir.

Supplies are fully affected from the international terrorist attack 11th September
2001, in WTC is New York in it is also affected by conflict political instability. Pashmina
in dry try become slowly increase in export 116 Pashmina industries have been registered
in Nepal Pashmina industry Association (APIA) out of Approximately 682 Pashmina
industries. So many small Pashmina industries are producing Nepali handmade
Pashmina. Most of Pashmina industry establishes in Kathmandu valley but some
industries located out of valley too.

1.1.2 Importance of Nepalese Pashmina

Before 16-17 years ago only few quantity of Pashmina were exported. By using
machinery and new technology, a large scale of production and export of Nepali
Pashmina were started. Now days many people are involved in production and export
Nepalese Pashmina. The Pashmina goods export from Nepal. Now it is a number one
goods to be export in third countries large scale of production and export of Pashmina has
been a very recent phenomenon until last four years ago back Pashmina certainly was not
one of the tap exportable goods. During the short period export of Pashmina has been
increased dramatically, because the Queen of U.K. has used Nepali Pashmina in the
special public accession. It is an important good to earn foreign currency. Nepalese export
wide range of countries. Nepalese Pashmina joined majestic growth rate more over
Pashmina topped all their handcraft items. It helps to earn foreign currency and give more
employment opportunity. It can help poverty elimination for poor people, who are living
in the remote village.
The main reason, Pashmina guised a majestic growth rate the extensive coverage of the
Pashmina in some international fashion magazines. An article in vogue which read card

4
board believed to have raised the name of Pashmina to new height increasing us of
Pashmina by leading, European actress and models were another major boost to its
export. Today development of communication, Email, Internet, web-site is developed. An
interest is the best and cheapest way to extend the business and to advertise about
Pashmina to the customer about product and service of Nepalese Pashmina without
visiting the product and service provider. Thus Nepalese Pashmina important in an
international market with in short period.

 Pashmina products

Pashmina accessories are available in a range of sizes, from "scarf" 12 in × 60 in (0.30 m
× 1.52 m) to "wrap" or "stole" 28 in × 80 in (0.71 m × 2.03 m) to full sized shawl 36 in
× 80 in (0.91 m × 2.03 m) and in rare cases, "Macho" 12 ft × 12 ft (3.7 m × 3.7 m). Pure
pashmina is a rather gauzy, open weave, as the fibre cannot tolerate high tension. The
most popular pashmina fabric is a 70% pashmina/30% silk blend, but 50/50 is also
common. The 70/30 is tightly woven, has an elegant sheen and drapes nicely, but is still
quite soft and light-weight.

They are known for their softness and warmth. A craze for pashminas in the mid-1990s
resulted in high demand for pashminas, so demand exceeded supply. When pashmina
shawls rose into fashion prominence during the era, they were marketed dubiously.
Cashmere used for pashmina shawls was claimed to be of a superior quality, which was in
truth due to the enhanced sheen and softness that the fabric (cashmere blended with silk)
had. In the consuming markets, pashmina shawls were redefined as a shawl/wrap with
cashmere and silk, notwithstanding the actual meaning of pashmina. Some shawls
marketed as pashmina shawls contain wool ,while other unscrupulous companies
marketed the man-made fabric viscose as "pashmina" with deceptive marketing
statements such as "authentic viscose pashmina".

The word "pashmina" is not a labeling term recognized by law in the United States.
According to the U.S. Federal Trade Commission:
Some manufacturers use the term pashmina to describe an ultra fine cashmere fiber;
others use the term to describe a blend of cashmere and silk. The FTC encourages

5
manufacturers and sellers of products described as pashmina to explain to consumers, on
a hangtag, for example, what they mean by the term.

 Markets of Pashmina industry

Nepalese pashmina industry has the wide scope of area as its market.As Nepalese
pashmina is taken as one of the best pashmina,obviously its demand in the world market
rises.
The Europeans countries, the USA, Canada, Japan, Singapore, Switzerland, Norway,
New Zealand, South Korea, India, Hong Kong, and among others, are the chief markets
for our products. Many consumers in these countries had been using products for the past
several years. It is sure that it will continue to sell the products to them if the industry is
able to remove their doubts by offering them quality products.
Similarly, China, Thailand, Brazil, Taiwan, South Africa, the UAE, Russia, Mexico,
Malaysia, Israel and Pakistan are also potential markets. Further planning are also made
to start exporting the pashmina products to these countries as well by registering the
trademark.

1.2 Problems of Nepalese Pashmina Industry

During a short period, Nepali Pashmina gained a majestic growth rate and got a top first
position in exportable article from Nepal. Now it has some problem to expend the
business of it. Exporters of Nepali Pashmina are facing these problems which are listed.
 Some of the trade is said to be selling machine made Pashmina as handcraft.
International market demand handmade Pashmina. Buyers in the international
markets looks strong liking to the Nepalese Pashmina because of handmade that is
why bigger order followed but some of the pashmina traders are said to be selling
machine made Pashmina as handmade crafted Wherease, Sooner or later such
business surplus are going to adversely affected the parties of importer, just as
mixing of fluff during carpet wearing few years ago which has the affected or pets
exports.
 Forefeet Changed in the government policies. In Nepal political instability is large
problem for export business. The government has charged tax rate of export and
import goods as the government change. The income tax act 205, it changes 0.5%

6
 of exported goods and 20.25%. Tax change in imported goods. Which is high rate
of decline production of Pashmina the production of Pashmina decries by political
instability, Maoist problem and government policy. We can say other small
technical problems are main causes affect to Nepali Pashmina.

 Reducing in the quality of Nepalese Pashmina. Generally to produce good quality

Pashmina 70% Pashmina and 30% risk was but some small industries besides
using above quality them using 40% Pashmina and 60% silk. This may be bed
effect for Nepalese Pashmina in International market.

 Raw materials used in Pashmina are imported problem. Wool and silk the only
two raw materials used in Pashmina are imported from china. China requires
payment in & dollars, but more than 70% of aggregate production being exported
to India. Indian importer pay in Indian currency thus to earn dollar and to improve
the financial position of the country in don't play position role.

 Nepali workers are avoid of potential source of income by Indian work force.
Market of Pashmina Industries is using Indian work force for preparing Nepalese
Pashmina. Indian work force is efficient and technically skilled. Thus lack of
skilled Nepali workers is devoid of potential sources of income.

 More them 90% of new manufactures haring no access of foreign market. Large
number of in experienced new Nepalese entrepreneurs who entered in the industry
in a huge capital but without any ideas about Pashmina as for as having no access
to the foreign market. Thus Pashmina markets may result in the bankruptcy of
many Nepali manufactures.

7
1.3 Objectives of the Study

Handicraft good must be exported well from Nepal Pashmina is main product. It has so
many objectives. The main objectives of this field work study are as follows:

 To find out present situation of the expert trend of these goods to the neighbor
countries and third countries.
 Share of Pashmina in handicraft goods.
 To identify the problems that is faced by the Pashmina business and gives appropriate
suggestion to improve Pashmina business.
 To find out the economic impact, which impose by this business in our country?

8
 CHAPTER II
LITERATURE REVIEW

Review of literature is defined as a broad, comprehensive in-depth, systematic and critical

review of scholarly publications, unpublished, scholarly, print materials, audio visual
materials and personal communications. The review of literature is a fundamental part of
planning of the study. The main purpose of literature review is to find out what works
have been done in the area of the research problem and what have to be done in the field
of the research study being undertaken. Every research requires a clear-cut idea on his
problem of the study and its solution, which emerges from the review of literature.
Scientific research must be based on past knowledge. The previous studies cannot be
ignored because they provide the foundation of the present study.
This chapter reviews the available literature relating to Marketing position, Handicraft
and Market Comparision Marketing position of Handicraft and other public enterprises.
So far as study on Marketing position of Handicraft is concerned, the management
experts and student describing the Marketing position relevant to this topic have
undertaken some studies. This chapter deal review of literature in the following two broad
frameworks:

Gopinathan (2009) has presented that the Export Postion can spot better investment
options for Loan Holders as the Marketing analysis measures various aspect of the
performance and analyzes fundamentals of a company or an institution.

'Marketing is not about providing products or services it is essentially about providing

changing benefits to the changing needs and demands of the customer (P.Tailor 7/00)'

2.1 Conceptual Review

For the conceptual review purpose, the researcher has undergone conceptual aspects of
Marketing position and review of related studies. Therefore, the objective of this heading
is to provide the essential knowledge of Marketing position, Market analysis and
Marketing effect on profit making.

9
2.1.1 Concept of Marketing Position
Marketing position is the indicator of overall Marketing Position and performance of any
organization. The elements directly related to the measurement of Marketing position are
market aspect of sales, debtor analysis and profit. The Marketing position forms the view
of debtor, profit and cash. The common statements reflecting Marketing position are
income statement and statements changes in Management Information system.
The Marketing statements are the summarized form Studying a Marketing position of any
organization is a complex process. There is no single Marketing statement that sets forth
all of the qualitative and quantitative information reflecting Marketing position. We must
move beyond the income sheet and perform their further analysis to get the complete
picture. Although income statements and questionnaire is important and do provide
information relevant to Marketing position.

10
 CHAPTER III
RESEARCH METHODOLOGY

3.1 RESEARCH METHODOLOGY

Woodcraft, being one of the most important exportable handicraft goods in our country,
there is a need of extensive study for its export promotion. The main objective of this
report is to carry out comparative study regarding total Handicraft export condition and
the share of Woodcraft export. The study is carried out mainly to find out the trend of
Woodcraft export and to ascertain the export country on the priority basis. The detailed
methodology adopted to carry out this study is discussed under the following headings:
Research design, nature and sources of data, data collection techniques and data analysis
tools.

3.1.1 RESEARCH DESIGN

"A research design is the arrangement of conditions for collection and analysis of data in
a manner that aims to combine relevance to the research purpose with economy in
procedure." Research design is the plan, structure and strategy of customer service
conceived so as to obtain answers to research questions. Descriptive and analytical
research design for the study has been applied as it gets two aspects. At first, it has the
description of the situation and secondly, it has the interpretation of data.

3.1.2 NATURE AND SOURCES OF DATA

This study is conducted on the basis secondary data only. The data related to the study are
collected from the following sources:

1. Annual reports of Handicraft Association Nepal,

2. Various booklets and journals concerned with foreign trade, Handicraft

Association of Nepal and Woodcraft.

3. From the official Website of Handicraft Association of Nepal:

www.nepalhandicraft.org

3.1.3 DATA COLLECTION TECHNIQUE

The information regarding to this study are mainly collected from the office of Handicraft
Association of Nepal from the published annual reports relating to the Export of different
Handicraft items. Also the Internet is used to find some literature and other necessary data
regarding this study. A prospectus published by HAN is much more useful to collect the

11
data regarding Introduction, Aim and Objectives, Promotion function. Also other books
regarding foreign trade are also studied to collect the data regarding this Study.

3.1.4 DATA ANALYSIS TOOLS

Presentation of Data: The collected data were presented with the help of Simple bar
diagrams, Multiple bar diagrams etc.

Analysis of Data: The analysis tools used in this study are Trend analysis, Coefficient of
Correlation analysis and Coefficient of variation analysis.

3.2 Limitation of the Study

 Reliability of date has not been exiled.

 This study has done in the basis of secondary data.
 Only five years data has used.
 Modern substituted tools have not been used.

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 CHAPTER - IV
DATA PRESENTATION AND ANALYSIS

4.1 Total Export and Export trend of Nepali Pashmina

Traditionally carpets and garments have been the good export goods of Nepal. They were
among the top the see foreign currency earners. The third one in being tourism, but now
Pashmina is taking the top position of exportable goods from Nepal goods from Nepal. It
is also a highest export goods handcraft Industry it plays a great important role to earn
foreign currency and employment opportunity,

Before 16/17 years ago, Nepalese Pashmina had been produced for local market and for
these tourists who were visited in Nepal. Among them a few quantity were exported.
Since a decade ago, Nepali Pashmina gained popularity in Europe American, Asian and
other countries. After that Nepalese people this business professionally and many people
involved in Pashmina business.

Large scale of production and exports of Nepali Pashmina has been very recent
phenomenon in Nepal. That is why the export of Pashmina decreasing last 3 years. The
following table No. 1 shows the export trend of Pashmina during fiscal years.

Table4.1
Export trend Pashmina during fiscal year
Rs. in Million
Fiscal Year Total Export of Pashmina
2071/72 989897860
2072/73 661373832
2073/74 700701035
2074/75 619391984
2075/76 491205766
Source: Nepal Pashmina Industries Association

Above that Table No. 1 show the total export of Pashmina during the fiscal years 2072/73
to 2073/74 which indicated the export of Pashmina is slowly decreasing but 2074/75 had
increasing and 2075/76 also decreasing export of Pashmina because of so many matters.

13
 Figure 4.1
Export Trend of Pashmina

1000000000
900000000
800000000 Fiscal Year
700000000 2071/72
600000000
2072/73
500000000
400000000 2073/74
300000000 2074/75
200000000 2075/76
100000000
0

Looking and analyzing to the above table, total export of the Pashmina business in the
fiscal year 2071/72 is very high in comparison to the other years. In the fiscal year
2072/73 the total export of Pashmina business is Rs. 989897860. In the fiscal year
2073/74 the export has been decreased and total amount of export is Rs. 661373832. In
the fiscal year 2074/75 the total export of Pashmina product is Rs. 700701035, which is
also more than previous fiscal year. In the fiscal year 2075/76 the export of Pashmina
product has been decreased by Rs. 81309051, which total amount is Rs. 619391984. In
following fiscal year 2072/73 again the total export of Pashmina has been decreased.

14
 Table 4.2
Country wise export of Pashmina goods from Nepal
Rs. In '000'
Country Rank Country Export Value
1 USA 218933021
2 Germany 93457421
3 UK 69074438
4 Italy 42532948
5 Canada 19847938
Source: Nepal Pashmina Industries Association

Figure 4.2
Country wise export of Pashmina goods from Nepal

250000000

200000000

150000000
Export Value
100000000

50000000

0
USA Germany UK Italy Canada

In the table 2 which is provide me that India in 2073, 2075/76 is the larger importer of
Nepalese Pashmina but India is less importer of Nepalese Pashmina. It's negative impact
in Nepalese Pashmina Industry, USA, Germany, UK. Italy, Canada and other country are
regular Importer Pashmina from Nepal. In the fiscal year 2075/76 USA, in USA is
218933021, Germany 93457421 UK 69074438 Canada 19847938 and Italy 42532948
and other country like Japan, France, Switzerland, Denmark are regular customer of
Nepalese Pashmina.

It shows that USA (United States of America) is the large import and India is lowest
importer, but they are regular importer. It shows Germany, UK, Italy and Canada are the
large and Indian, Belgium, Portugal are lowest importer countries.

15
4.2Export Pashmina of the current Fiscal year
Table 4.3
Export Pashmina of the current fiscal year 2075-76
S.No. Month Change
Amount Rs Percent
Percent
1 Shrawan 54,745,458 8.83 -
2 Bhadra 57,183,323 9.23 4.45
3 Ashwin 59,623,629 962 4.27
4 Kartik 64,236,057 10.37 7.74179
5 Mangsir 82,053,654 13.24 27.74
6 Poush 48,585,280 7.84 -40.79
7 Magh 33,648,797 5.43 -30.80
8 Falgun 26,546,662 7.52 38.45
9 Chaitra 26,833,417 4.33 -42.35
10 Baisakh 31,111,375 5.03 15.94
11 Jestha 49,965472 8.06 60.60
12 Asadh 64,888,828 10.50 29.87
Total 619,391,984 100.00%
Source: Handicraft Association of Nepal

In Table No. 3 which provided me by Handicraft Association of Nepal. The table

represents information about the export trend of Pashmina in monthly wise current fiscal
year 2075/76.
Table No. 3 it has shown report trend in the compare of before month 4.45% increase in
Bhadra then Shrawan , Mangsir is large import month and Chaitra is lower import month
the month of Managsir, where large export of Pashmina Rs. 82,053,654. Then after Jestha
64,888,828 and lower import month Chaitra which is 26,833,417.

16
 Figure 4.3
Monthly Export of Pashmina

Monthly Export of Pashmina

90,000,000
80,000,000
70,000,000
60,000,000
50,000,000
Amount Rs
40,000,000
30,000,000
20,000,000
10,000,000
0
Magh

Jestha
Kartik

Poush

Asadh
Falgun
Bhadra

Chaitra
Ashwin

Baisakh
Mangsir
Shrawan

In this figure 3 it has shown that Pashmina has exported in Monthly wise. It is shows that
Mangsir is largest export month which 13.24% of total export has exported. As well as
export of Pashmina in month Shrawan, Bhadra, Ashwin, Jestha and Ashadh are in Medici
ration. Export of Pashmina month Poush, Magh, Chaitra and Baisakh are not satisfactory.

17
4.3 Comparision of Pashmina with other Handicraft Goods

In the table below show the goods of the handicraft which are exported in fiscal year
2073/74 to 2075/76.
Table 4.4
Goods exported in fiscal year
Rs. In '000'
S.No. Product 2073/74 2074/75 2075/76 Total
1 Pashmina 661374 700701 619392 1981467
2 Wollen 432203 555183 657726 1645143
3 Silk 132354 129074 126522 387810
4 Cotton 113721 110769 92564 317054
5 Hemp Goods 45256 62082 51614 158953
6 Allo Goods - - 4765 4765
7 Dhaka Products 4995 3370 4662 13027
8 Silver Jewelry 367498 347448 360080 1105026
9 Metal Craft 293066 373010 437790 1103866
10 Handmade Paper 301725 263764 269630 8351198
11 Wood Craft 69882 80824 66807 21752
12 Leather Goods 23610 25812 20761 70183
13 Incense 18308 20591 17726 56626
14 Budha (Thanka) 15003 21009 15411 51423
15 Bone & Horn
10691 14977 23825 49493
Products
16 Ceramics Products 14864 18717 15081 48662
17 Beads Items 6026 7969 9519 23513
18 Bamboo Products 2488 2918 2199 7605
19 Store Craft 3459 3373 3018 9850
20 Plastic Items 7453 8531 9921 24905
21 Miscellaneous 87863 6934 72630 189837
Total 2571841 284948 2880645 8301963
% of sales on the year
39.98% 34.32% 34.70% 100%

Source: Handicraft Association of Nepal,

18
In above the table it shows that among other handcraft good, the Pashmina is the highest
exported goods form Nepal in those years. In the three fiscal years Rs. 1,481,466,851
Pashmina exported and then woolen goods have exported secondly. Pashmina is main
earning sources of the country. Handicraft goods are more important in Nepalese
economy 23.87% of exported good in handcraft good. Which are life Pashmina woolen
goods, Silver Jewelry, Metal Craft, Handmade paper, Silk, Cotton wood craft, leather
goods. Incense, Thanka, and other textile and son textile are main exported had made
goods.
Figure 4.4
Ratio of Handicraft Goods

2073/74
2074/75
2075/76
Total

In this figure 3 it show the total export of handicraft goods. Among the three years
2074/75 is the better then the other fiscal years in year 2074/75 export of handicraft is
higher than other respectively.
In this figure 34.70% covered due fiscal year 2073/74 and other 34.32% in 2074/75,
39.98% in 2075/76. Handicraft Goods is slowly increased in export.

Table 4.5
Handicraft Goods is slowly increased in export Rs. in '000'
Product 2073/74 2074/75 2075/76
Pashmina 661374 700701 649392
Other 1910467 2148775 2261253
Total 2571841 2849476 2880645

19
 % of Pashmina 25.72% 24.59% 21.50%
% other Goods 74.28% 75.43% 78.50%
Source: Handicraft Association of Nepal.

Above table shows the trend of export of handicraft. The export of goods are gradually
increasing. In 2067/68, percentage of good was recorded 74.28% and till 2072/73, it
increased to 78.50%. However, the export of pashmina is gradually decreasing. In
2067/68, export of pashmina was recorded 25.72% and in 2072/73, it dropped to 21.50%.

Figure 4.5
Comparison of Pashmina and other Handcraft Goods

2500000

2000000

1500000 2073/74

1000000 2074/75
2075/76
500000

0
Pashmina Other

Above figure is the comparative bar diagram between Pashmina and handicraft goods.
The trend of export of handicraft good is in increasing order whereas the trend of export
of pashmina is in decreasing order.

20
4.4 Diminution Condition

Fiscal year 2071/072 export Pashmina was good. Fiscal year 2072/73 was decreasing by
very small ration with fiscal year 2071/072. The case of foreign currency earned and
various numbers of people get best employment and most of people in engage in
Pashmina business and other handicraft product. In 7/8 years ago Pashmina is excellence
export then handicraft. But now other handcraft products slowly increase and Pashmina is
slowly decrease. But regular export countries USA, Germany UK, Canada, Italy, UAE,
France, Japan, Switzerland Import regular customer. Then Import is slowly increased but
India is also regular customer but India Import now few of Pashmina.

21
 Table 4.6
Position of regular exports country
S. No. Country 2074/75 2075/76 Change %
1 U.S.A 137520316 178,790054 30%
2 Germany 112,557,312 81,619,558 27.48%
3 U.K. 96,924,972 75,071,288 22.55%
4 Canada 85816394 58,545,897 31.77%
5 Italy 63092661 50,679,861, 19.67%
6 U.A.E, 37006998 50,369,749 36.11%
7 France 35,787,132 26,129,736 26.98%
8 Japan 17,371,569 25,069,120 44.31%
9 Switzerland 30,060,421 21,677,122 27.89%
10 Denmark 8,601,818 10,373,531 20.56%
11 Spain 4,542,591 2,652,003 41.62%
12 Taiwan 3,295,870 2.250,299 31.72%
13 Thailand 7,739,598 540,433 %93.02
14 Austria 4,335,774 1,010,732 76.67%
15 Australia 7010459 2,751,245 60.75%
16 Sweden 3977680 4,335,859 9.01%
17 Hong Kong 8,726,011 2,934,853 66.36%
18 India 1,283,617 469,982 63.38%
19 Portugal 1476805 494,492 66.51%
Source: Nepal Pashmina Industries Association

Regular exports countries, USA export large number of Pashmina and Portugal export
few small number of Pashmina, According table 6 it shows that the country of their
export position. It is noted that USA export in fiscal year 2072/073 is 1375220316 which
is increase by 30% of previous year secondly export Germany 81,619,558 which is
decrease by 27.48% of last year export, Japan, Denmark Sweden had increase in export
but other country export is decrease.

22
 Figure 4.6
Position of Regular Export Country

From above table it is found that USA is the top importer of pashmina from Nepal
followed by Germany, UK, Canada. Italy was in 5th position for 2075/76 only thereafter
followed by France Japan. The least importing country is Portugal.

4.5 Major findings

Especially pashmina helps to increase the national GDP and uplift the economic standard
of the nation. Nepali pashmina faced various problems while exporting to the various
countries. Nepal export pashmina to various countries such as
India,Italy,Canada,Germany,USA,France,Portugal,Japan,Hongkong,Australia,Taiwan,Sp
ain,Thailand,Sweden,Denmark and many more. Pashmina products are one of the leading
export items of Nepal. They have made an outstanding contribution in introducing Nepal
to the rest of the world and play a key role in uplifting the economic level of the nation.
Pashmina is made from softest and warmest wool that grows on the underside of the
mountain goods derived of the word ‘Chyangra’ the inhabitant of the great Himalayan
mountain range (10000-16000 ft).Most of the industries as well as pashmina industries
are fully affected from the international terrorist attack 11th September 2001,in WTC
New York due to conflict political instability. There are 116 pashmina industries which
are being registered in Nepal pashmina association (NPA) out of approximately 682
pashmina industries. Before 16-17 years ago only few quantity of pashmina were
23
exported. By using machinery and new technology, a large scale of production and export
of nepali pashmina were started. The pashmina goods exports frpom Nepal. Now it is a
number on goods to be exported in third countries. Large scale of productions in export of
pashmina has been a very recently phenomenon until last four years. In short period the
demand of Nepalese pashmina increases dramatically. Nepal faces various problem while
exporting the pashmina to outside countries such as lack of technology, machine
equipment, nepali pashmina company cannot supply as per the demand. As a result it
creates problem for reseller. Forfeit changed in the government policies. In Nepal
political instability creates a large problem for the export of nepali pashmina. Reducing
the quality of nepali pashmina, there are so many limitation of nepali pashmina, the exact
data cannot be found due to following reasons:

 The study has done on the basis secondary data.

 Only five years data has been used.
 Modem substituted tools has not been used and many more.

The export rate of Nepali pashmina is in decreasing condition in the fiscal year 2064/65.
The total export was 989897860. In fiscal year 2071/72 the total export of Nepali
pashmina was 661373832. In fiscal year 2072/73 the total export of pashmina was
700701035. In fiscal year 2073/74 the total export of nepali pashmina was 619391984. In
fiscal year 2074/75 the total export of Nepali pashmina was 491205766. In fiscal year
2075/76 the total export of Nepali pashmina was 5842675083. In compasrision with other
handicraft goods the pashmina was exported more than other handicraft goods such as
wollen,silk, cotton ,hempwoods,dhaka products and other. After reading the trends of
exports of pashmina from Nepal, we came to know that Nepali pashmina is the business
of high potentialty taking aside the veries of difficulties and problems.

24
 CHAPTER - V
DISCUSSION, CONCLUSION AND IMPLICATION

5.1 DICUSSION

In this project export of Pashmina Business in Nepal, there are a briefly summarize about
Introduction, background, importance of Pashmina, problems and prospects in this
industry. Purpose and objective of fieldwork report method of data collection in
introduction phase. This phase help to understand about Pashmina and Pashmina business
how to read this field work report and other so many.

During the 1990s, the Nepalese pashmina industry had been successful in dominating the
international market due to a constant effort of businessmen and the government.
However, Nepal saw a sudden decline in the export of pashmina products after India and
China started exporting similar products to third countries.

Over one decade, the export of Nepalese pashmina items has dropped by about 90 per
cent. The downturn trend had begun since 2000. During that time, Nepal used to export
pashmina products worth over Rs. 12 billion annually. Now the export has dropped to Rs.
one billion.

In 2010, Nepal’s pashmina sales made up just 3 per cent of the total exports. But it ranked
third among the exportable items if we measure it in terms of hard currency earnings.
During the peak period, international buyers loved to use Nepalese pashmina as exclusive
and invaluable items.

In the 1990s, the demand for Nepal’s pashmina products had reached its peak. During that
time, we had failed to supply products as per the demand.

With such a fall in the export, there are only about 200 factories in operation in Nepal.
The number of jobs this industry has created stands at only 30,000. Until a decade ago,
more than 100,000 people used to work with over 1,000 factories.

25
In the data analysis a presentation faze the many tables and figures of export trend of
Pashmina and exported Pashmina goods as well as handicraft goods. These tables and
figure show the past and present condition of export Pashmina business and in analysis
how to develop this business with is short periods and it also show why and how the
business of Pashmina is going constantly export.

5.2 Conclusion

Nepal is one of the least development countries in the world. Most of the people are under
the line of poverty so Pashmina business can play the important role to improve the
economic condition on the country so the effort of private sector to improve the Pashmina
business is good condition but it has not enough for developing Pashmina business, for
that better stop also should be processed by Government sector. Government should give
the facilities to the Pashmina business holder. It will help to increase per capital income
and it also eradicates the problem of poverty in Nepal.

Nepal is a land locked country so they are difficulties in proper transportation. Lack of the
proper transportation, high quality goods can't the good marked so it must be sold on very
low price. Not only the Pashmina but also the lots of genuine resources are being wastage
on the lack of transportation and technology.

Although the export of Nepal’s pashmina products has been declining gradually, this
sector holds a lot of prospects. There are rooms for its recovery.

During the 1990s, the Nepalese pashmina industry had been successful in dominating the
international market due to a constant effort of businessmen and the government.
However, Nepal saw a sudden decline in the export of pashmina products after India and
China started exporting similar products to third countries.

Over one decade, the export of Nepalese pashmina items has dropped by about 90 per
cent. The downturn trend had begun since 2000. During that time, Nepal used to export
pashmina products worth over Rs. 12 billion annually. Now the export has dropped to Rs.
one billion.

26
In 2010, Nepal’s pashmina sales made up just 3 per cent of the total exports. But it ranked
third among the exportable items if we measure it in terms of hard currency earnings.
During the peak period, international buyers loved to use Nepalese pashmina as exclusive
and invaluable items.

In the 1990s, the demand for Nepal’s pashmina products had reached its peak. During that
time, we had failed to supply products as per the demand.

With such a fall in the export, there are only about 200 factories in operation in Nepal.
The number of jobs this industry has created stands at only 30,000. Until a decade ago,
more than 100,000 people used to work with over 1,000 factories.

Nepal is a agriculture based country most of the people are participated on agriculture and
the raw materials needed for Pashmina is also provide from the wool of Mountain Goat.
(Chyangra) so keeping chyangras in their own house they can get the wool needed for
Pashmina so the government also gives the facilities to such kind of cottage industries
such as loan facilities etc.

From this fieldwork report we can get lots of information related to Pashmina business in
Nepal such as importance of Pashmina business in Nepal. It's difficulties and its role in
Nepalese economy. It also shows the export of Pashmina in international market from
fiscal year 2071/72 to 2075/76.

According to that data the export of Pashmina is slowly decreased in 2071/72 to 2072/73
and slowly increases 2073/74 and again decrease 2075/76. Now Pashmina has reserved
the 21.5% of the total handcraft goods exported could not compete with them due to a
price difference. The two neighbours were motivated towards although the quality of
Nepal’s pashmina products was better than that of the Chinese and Indian ones, we
exporting pashmina in bulk.

Consumers began to get confused when they saw an increased inflow of Chinese products
into the market. The Chinese items were cheaper than the Nepalese products. They could
not identify the genuine products.

27
As the Chinese products were found being made of viscose, polyester and wool, their
prices were lower as compared to ours. Naturally, our products were more expensive than
the ones produced by our neighbours because we use only pure wools of mountain goats
(Chyangras).

So the role of Pashmina business in Nepalese economy is very important. There is no

reason to be worried about the decrease the Pashmina but we must be careful to improve
that business. If we can improve it carefully Pashmina business will be reached at initial
situation. For that all related party in its improvement.

28
 REFERENCE

Acharya Bala Ram (2068) "Research Methodology and Report writing"

Bansal Dr. Hari (2062) "Strategy in Nepal's Foreign Trade"

Browser of KPU Euro Pashmina P. Ltd.(2062)

Bulletin and News (2063) Published by National Tea % Coffee Development

Board

Bulletin and News (2063) Published by Nepal Pashmina Industries Association

Handicraft News (2063) "Published by Handicraft Association of Nepal"

News about Pashmina published by Nepal Daily News paper

Pandey K.P. foreign trade & transit management(2063), Bhudipuran Publication Centre

Panta Prem R. (2062) "field-work assignment and report writing"

29
 ANNEX
Nepal exports pashmina to various countries. Among these various countries Nepal
exports huge quantity of pashmina to USA with the quantity of Rs 218,933,021,000.
Secondly Nepal exports its pashmina to Germany with the quantity of Rs 93,457,421,000.
Thirdly Nepal exports its pashmina to UK with the quantity of Rs 96,074,438,000.
Fourthly Nepal exports its pashmina to Italy with the quantity of Rs 42,532,948,000.
Fifthly Nepal exports its pashmina to Canada with the quantity of Rs 19,847,938,000. In
fiscal year 2064/65 the total export of pashmina business was above Rs 1,000,000,000
which is very high in comparision to other years. In fiscal year 2064/65 the total export of
pashmina business was Rs 989,897,860. In the fiscal year 2065/66 has been decreased
and the total amount of export is Rs 661,3738,232. In the fiscal year 2066/67 the total
amount is Rs 700,701,035, which is also more than previous fiscal year. In the fiscal year
2067/68 the export decreased by Rs 81,309,051 to which total amount is Rs
619,391,984. In fiscal year 2071/72 has again the total exports has been decreased.

30