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NeA Handbook of Majorp Export Potentialsal of Products From Ne p al A Handbook of Major Export Potentials Nepal

Government of Nepal Ministry of Industry, Commerce and Supplies Singhadurbar, , Nepal Ministry of Industry, Commerce and Supplies Singhadurbar, Kathmandu, Nepal 5th floor Hotel Norbulingka, Ga Hiti Marg, All Fabrics, Textile, Yarn New Baneshwor, Kathmandu, Nepal Thamel, Kathmandu, Nepal and Rope Phone: +977-1- Phone: +977-1-4410630/4423515 Nepal Textile Industries 4104405/9841465491 Ext.17 Association Email: [email protected] Website: www.nrmassoc.org Jwagal, Kupondole, Lalitpur, Nepal Website: www.coffeenepal.org.np Phone: +977-1-5529290 Silver Jewelry Vegetable and Vegetable Federation of Nepal Silver Export Council of Nepal seeds Gem and Jewelry Association Bhagabatisthan, Thamel, Nepal Horticulture Society Tripureshwor, Kathmandu, Nepal | Kathmandu, Nepal Khumaltar, Lalitpur G.P.O Box: 11581 Phone: +977 1 4441337 Phone: 9851003113 Phone: +977-1-4253250 Email: [email protected] Email: Nepalihorticulture@gmail. Fax: +977-1-4253251 Website: www.nepalexport.org.np com Email: [email protected]

Leather Fruit and Juices Nepal Gem and Jewellery Nepal Leather Industries National Centre for Fruit Association Association Development 4th Floor, Kesha Plaza, New Road, GPO Box: 9944, Anamnagar, Kritipur, Kathmandu, Nepal Kathmandu Kathmandu Phone: +977-14331619 Phone: +977-1-4220210 Phone: +977-1-4265248, Email: [email protected] Email: [email protected] Fax: +9774228978 Website: www.fdd.gov.np Website: www.negja.org.np Email: [email protected] Honey Handicraft Footwear Federation of Beekeeping Nepal Handicraft Association of Nepal Footwear Manufacturer’s Bharatpur-9, Chitwan Thapathali, Kathmandu, Nepal Association of Nepal Phone: +977-1-56-531999 Phone: +977-1-4244231, UWTC, 4th Floor, Kathmandu Email: [email protected] +977-1-4245467 P.O.Box 19732 Website: www.fnbk.org.np Fax: +977-1-4222940 Phone: 977-1-4117075 E-mail: [email protected] Email: [email protected] Handmade Paper Website: www.nepalhandicraft.com.np Website: http://www.fman.org.np Nepal Handmade Paper Association (HANDPASS) Felt Products Chyangra Ram Marga Ward No 11, Association for Craft Producers Nepal Pashmina Industries Babarmahal, Kathmandu Ravi Bhawan, Kathmandu, Nepal Association Phone: 977-1-4783086 Phone: +977-1-4275108, Kanti Path, Kathmandu, P.O. Box Email: [email protected] +977-14270721 No. 44600 Website: www.handpass.org Email: [email protected] Phone: +977-1-4254713, Website: http://acp.org.np Fax: 00977-1-4257859 Readymade Garments Email: [email protected] Garment Association of Nepal Flowers Website: www.chyangrapashmina.com (GAN) Floriculture Association Nepal Sankhamul Road, New Baneshwor, Jwagal-11, Lalitpur, Nepal Hand Knotted Kathmandu, Nepal Phone: 977-01-5261089, Nepal Carpet Manufacturer and P.O. Box: 21332 Fax: 977-1-5261089 Exporter Association Tel: +977-1-4780691/4780773, Fax: Email: [email protected] P.O. Box No. 20747, Boudha Tusal , +977-1-14780173 Website: www.fanepal.org.np Kathmandu, Nepal Email: [email protected], www.nepalfloraexpo.com.np Phone No : (977) 1-4486849 [email protected] Email : [email protected] Website: www.ganasso.org and Jute Bags Website: www.nepalcarpet.org Nepal Jute Mills Association Semi-precious Stone , GPO Box: 139, Nepal Nepal Rocks & Mineral Phone: +977-526852, Nepal Coffee Producers Association +977—528657 Association Email: [email protected] Newbanshwor Plaza D-Block Productsfrom Nepal A Handbook of Major Export Potentials of Nepal

Government of Nepal Ministry of Industry, Commerce and Supplies Singhadurbar, Kathmandu, Nepal

Contents

Page i. : An Overview 10 ii. Details of Export Potential Goods of Nepal 14 Large Cardamom 14 Ginger 17 20 Medicinal and Aromatic Plants (MAPs) 23 All Fabrics, Textile, Yarn and Rope 27 Leather 30 Footwear 33 Chyangra Pashmina 36 Knotted 39 Coffee 42 Vegetable and Vegetable Seeds 45 Fruit and Juices 48 Honey 51 Instant Noodles 54 Handmade Paper and Paper products 57 Readymade Garments 60 Semi-precious Stone 63 Silver Jewelry 66 Woolen Products 69 Flowers 72 Handicrafts 75 Lentils 78 Jute Bags and Sacks 81 Felt Products 84 Rosin and Resin Acid 87 Rudrachya and Bodhichitta 90 Allo (Himalayan Nettle) 93 Himalayan Dog Chew (Chhurpi) 96

Annex: List of Contacts for the Products 98 10 Products from Nepal Economy of Nepal: AN Overview Official Country Name Nepal Capital City Kathmandu Population 29.10 million Area 147,181 sq. km Standard Time GMT + 5:45 hours Form of Government Federal Republic: Multi-party parliamentary democracy Head of Government Prime Minister Federalism Seven Provinces Language Nepali (Official), Business English (widely used) Currency Nepali (NPR) Foreign Exchange Pegged Currency Exchange Rate with Indian Currency (Rupee) Secular State (Hinduism – 81.3%, – 9.0%, Islam – 4.4%, Religion Kirat – 3.1%, Christianity – 1.4%, Others – 0.76%) Region (Tropical/ Sub-tropical) Geography/Climate Hilly Region (Moderate) Mountain region (Sub-alpine/alpine)

Economic Indicators Particulars 2014/15 2015/16 2016/17 2017/18 Population (In million) 27.95 28.33 28.71 29.10 Per Capita GDP (In USD) 766.91 747.79 866.48 1003.64 GDP Growth Rate (In %) 2.97 0.20 7.39 5.89 Per Capita GNI (In USD) 778.23 759.08 877.64 1011.71 (% of GDP) 28.98 29.52 26.32 24.25 Consumer Price (Annual %) 7.20 9.90 4.50 4.10

Source: Economic Survey 2018, MOF, National Accounts 2018, CBS, Current Macroeconomic Situation 2017/18, NRB

Contribution of Major Exports and handicrafts, cardamom, tea, cof- Domestic Productions to Imports of Nepal fee, fruit and vegetable juices, Nepali Economy Nepal’s total exports in and medicinal herbs. Nepal main- In 2017/18, sector 2017/18 were NRs. 81.33 billion, ly imports products, contributed around 27.04 per- while total import added up to and steel products, transport cent to Nepal’s GDP; industry NRs.1245.19 billion. Nepal main- vehicles and their parts, electron- sector contributed 13.48 percent ly exports woolen carpet, iron ics and electrical equipments, and services sector contributed and steel products, readymade gold, pharmaceutical products, 51.54 percent. garments, yarns and pashmina, cement, fertilizers and chemicals. Products from Nepal 11

Nepal’s Top Trade Partners is the largest trading partner of Nepal. Nepal trades more than 60% with India. The list of 15 trade partners of Nepal with trade values and shares is shown below.

Total trade by countries in Fiscal Year 2017/18 (value in billion NRs.)

Export Import Country Export Value Percentage Country Import Percentage India 46.66 57.37 India 812.55 65.25 U.S.A. 9.17 11.27 P. R. 159.98 12.84 4.68 5.75 20.84 1.67 3.14 3.86 13.53 1.08 U.K. 2.85 3.50 Thailand 13.23 1.06 China P. R. 2.44 2.99 U.A.E. 13.21 1.06 1.28 1.57 12.47 1.00 France 1.23 1.50 10.23 0.82 1.08 1.33 Korea R 10.16 0.81 1.04 1.27 10.15 0.81 U.A.E. 1.01 1.23 U.S.A. 9.89 0.79 Canada 0.86 1.05 9.01 0.72 0.64 0.79 Canada 8.01 0.64 Vietnam 0.62 0.75 Germany 7.89 0.63 Other Countries 4.64 5.70 Other Countries 134.04 10.76 Grand Total 81.33 100 Grand Total 1,245.19 100

Source: Annual Foreign Trade Statistics F.Y. 2017/18, Department of Customs, Ministry of Finance, Government of Nepal

Comparative Advantage near sea level in the south. Ne- rics, Textile, Yarns and Ropes, of Nepal pal grows various agricultural leather, Footwear, Chyangra Nepal is located between two of products, medicinal herbs, and pashmina, and Knotted Carpets. the world’s most populous coun- high-quality tea. There is also a NTIS, 2016 has also identified tries, India and China, with easy huge potential for hydropower- other 12 export potential goods access to both vibrant markets. approximately 43,000 MW is which include Hydro-electricity, It has significantly low tariffs on technologically feasible. All Fabricated Steel and Met- imports, which can make Nepal als, Coffee, Fruit and Vegetable an attractive location, even for Export Potential Juices, Honey, Instant Noodles, Indian investors. Nepal is also Products of Nepal Lentils, Paper Products, Ready- entitled to preferential treatment Nepal Trade Integration Strat- made Garments, Semi-precious in several developed-country egy (NTIS), 2016 has identified 9 stones, Silver Jewelry, and markets. goods and 3 services as priority Products. Natural as well as cultural as- export potentials. This identifica- sets of Nepal also offer a sub- tion is made based on the export Government Incentive stantial opportunity to investors. performance and inclusive and for Export Promotion The country has a range of cli- param- The government of Nepal has matic conditions– from tropical eters. The list of these 9 goods provisioned to provide up to 5% to sub-arctic. The topography includes Large Cardamom, Gin- cash incentive for the export of is generally mountainous in the ger, Tea, Medicinal and Aro- certain products. According to north, hilly in the middle, and matic Plants (MAPs), All Fab- the new policy, export of fifteen 12 Products from Nepal

different products fetch 5% cash Prospects of Foreign Transfer Act (FITTA) 2019, incentive on the total exported Direct Investment in foreign investment companies value. The 15 products entitled Nepal are equally treated as national for 5% cash incentive include, Nepal is one of the best desti- companies, 100% foreign in- among others, processed tea, nations for foreign direct invest- vestment are allowed in many coffee, handicraft and woodcraft, ment. Having a cheap labor industries (except some critical leather products, processed gin- force, abundance of working sectors), technology transfer is ger, processed honey, hand- age population, larger market possible in all sectors of indus- made paper, and mineral water. access like India and China, tries, repatriation of earning from Likewise, exporters get 3% cash various climatic zones, abun- profit or dividend is guaranteed incentive on the exports of 11 dant natural resources, and high in foreign currency. Similarly, products. Some of these include rate of return on investment are Industrial Enterprise Act, 2016 readymade garment, carpet and some of the attractive features has simplified the procedures woolen goods, pharmaceuticals, of Nepal that incentivize foreign- for entry, operation, and exit of and jewelry ornaments. ers to make investment in Ne- industrial enterprises. This act The list includes most of the pal. Foreign investors can have has provisioned tax and vat in- products which have high com- 100% ownership of a company centives, facility to acquire land, petitive advantage and are listed in almost all sectors and also and one window service. The in the NTIS 2016. This provision provision for the repatriation of major incentive of this act is that was introduced amid widespread capital and profit to the home income tax is fully exempted for complaints from many exporters country. a startup company with capital that they had to wait for months According to the Foreign investment more than NRs. 1 to receive cash incentives. Investment and Technology billion and employment genera- Products from Nepal 13

tion of more than 500 for the first it is less than NRs. 10 billion, the be registered at Tax/PAN at Inland 5 years of its establishment. application is submitted to DOI. Revenue Department. After that, To start a foreign company in The relevant authorities carefully the company has to take permis- Nepal, the application should be review the documents and issue sion from central bank to make a submitted to either the Investment the foreign investment approval bank account or wire transfer and Board Nepal (IBN) or the Depart- letter if the documents are suf- complete the industry registra- ment of Industry (DOI) depending ficient and in order. After getting tion process from DOI. The other upon the fixed capital investment. the approval letter, company reg- necessary information can be If fixed capital investment is more istration is completed at the Office obtained from Investment Board than NRs. 10 billion, application of Company Registrar. Then the Nepal (www.ibn.gov.np) and DOI should be submitted to IBN and if newly registered company must (www. doind.gov.np).

Trade and Investment Framework Agreement (TIFA) Nepal has been granted the preferential trade ing handicrafts, shawls, travel goods, luggage, benefits for select products to be exported from handbags, blankets, , gloves etc. The core Nepal to USA which is available through De- objective of the program was to help Nepal’s cember 31, 2025 as a result of the Trade Fa- economic recovery from the 2015 earthquake. cilitation and Trade Enforcement Act of 2015. It was a goodwill gesture shown by the This facility was a result of The Trade and In- towards Nepal, when the coun- vestment Framework Agreement (TIFA) be- try’s economy was shattered by the earth- tween the Government of Nepal and the United quake and immediate trade disruptions. US States of America. This was a new country- customs law allows import of up to 1.5 per- specific preference program for Nepal following cent of total import of aforesaid projects un- the earthquake of 2015. This program granted der zero tariff facility, thus there still exist a duty-free treatment to Nepal for products cover- large possibility for Nepal to expand exports ing 77 Harmonized Tariff Schedule lines includ- to US market. 14 Products from Nepal Large Cardamom

Details of Export Potential Goods of Nepal Large Cardamom

Product Highlights Type Cardamom Production Area 46 districts (Major districts-Taplejung, Panchthar, Ilam, and Sankhuwasabha ) Major Export Destinations India, China, and France. Export Value in F.Y. 2017/18 NRs. 4.84 billion Export Volume in F.Y. 2017/18 5,402,011 Kg. Average price per Kg as of NRs. 850 March 2018

Product Feature be a luxury item consumed by up- Large Cardamom (Amomum per middle-class and rich popula- It is widely subulatum) is a perennial herba- tion as it is highly expensive. popular ceous spice crop within Zingiber- It is mostly grown in the sub- aceae family, simply referred to himalayan range of Nepal at in world as “Alaichi” in Nepal. It is widely altitude ranging between 600 market as popular in world market as Black and 2000 ft. with annual rainfall Gold, or the Queen of Spices. Its between 1500 - 2500 mm and Black Gold, wide popularity in world market is temperature remaining within 8° or the Queen driven by its culinary and medici- C to 20° C. Though optimal yield nal properties. It is considered to life of a cardamom plant is con- of Spices. Large Cardamom Products from Nepal 15

sidered to be only between 8 - 10 People from different regions buy the product for dif- years, total lifespan does remain ferent purposes which are listed as below. 20 to 25 years. Its economic yield starts from 3rd year of cultivation. Country Purpose of use Historically, it is considered that For traditional Indian sweets, tea, spices, the first cultivation of a cardamom garam masala, mouth refresher started after the formation of Car- Nordic For baking purpose i.e. Finnish sweet damom Development Centre at countries bread pulla, Julekake in Fikkal, Ilam in 1975. In the world, 16 different variants of large car- Middle East Cardamom powder for sweet dishes, damom are cultivated and only traditional flavoring in coffee and tea 7 variants are cultivated in Nepal which include Ramsai, Golsai, The oil extracted from the seeds of the herb is known as one of the Chibesai, Dambersai, Sawney, most effective essential oils and is widely used in aromatherapy. Kantidaar, and Salkpure. Large cardamom has plenty of medicinal benefits for human health such as gastro-intestinal health, cardiovascular health, respiratory General Usage of Large health, oral health, and urinary health. It has anti-carcinogenic, anti- Cardamom septic and antibacterial properties, and is also full of the antioxidants, Large cardamom has huge de- vitamin C, and the essential mineral like potassium. mand in the world for flavoring, cooking, and medicinal uses. Its demand is surging due to its unique taste, strong fragrance, and intense aromatic character. Generally, large cardamom is used in culinary process in the fol- lowing ways: • Large cardamom is crushed and added in a dish as it inten- sifies the taste of the food. • It gives a nice flavor and aroma when used in and dal-curry preparation by stimulating the taste buds. • It is widely used as one of the ingredients in pan masala and garam masala, and also is broadly preferred with different beverages, sweets, and Indian curries. • Its pods provide a smoky flavor when used in soups, casse- roles, and marinades. • It also goes well in rice pud- dings, cakes, ginger fig chut- ney, payasam etc. • It is also used as herbal infu- sions and health tonics, tea, and even with coffee. 16 Products from Nepal Large Cardamom

Production Site Market Situation Value Added Activities It is cultivated in sub-himalayan Nepal is the largest producer of Large cardamom produced range of Nepal. Almost 22,000 large cardamom in the world with should be processed before households in Nepal from 46 dif- market share 68 percent. Ac- sending it to the consumers. First stage of processing ferent districts are engaged in cording to the Trade Map data, involves drying. In Nepal, its cultivation. The major carda- the major export destinations in- drying is being practiced mom producing districts include clude Saudi Arabia, United Arab either by traditional method Taplejung, Panchthar, Ilam, and Emirates, India, Bangladesh, or by improved smokeless Sankhuwasabha. These districts Kuwait and so on. Saudi Arabia dryer. There is large scope for produce almost 80% of total na- alone imports almost 25% of expanding production area and tional production. total world imports and these 5 increasing productivity as well countries all together import al- as quality in Nepal. This can be most 65% of the global demand. done by improving processing, In 2017/18, Nepal exported car- undertaking value adding damom worth NRs. 4.84 billion. activities such as tail cutting, grading by size, and cleaning, and dispatching to market branding in niche markets and generation of by product such as perfumes, oils, dried powder. Ginger Products from Nepal 17

Ginger

Product Highlights Type Zingiber officinale Production Area Ilam, Salyan, Palpa, Nawalparasi, Morang, Doti, Kailali, Tanahu, Surkhet, Sindhupalchok, Syangja, Makwanpur, Sindhuli, and Kaski Production Volume 284,000 MT Major Export Destinations India Export Value in F.Y. 2017/18 NRs. 772 million Nepal is Export Volume in 2017/18 23,123 MT one of the largest ginger producing countries in the world. 18 Products from Nepal Ginger

Product Feature out and ginger is harvested by Production Area Ginger (Zingiber officinale) usu- digging out the rhizomes. Ginger in Nepal ally called ‘Aduwa’ or ‘Suntha’ in is rich in different vitamins, mag- It is estimated that almost Nepal is a flowering plant which nesium, potassium, silicon, iron, 400,000 farmers are involved in ginger farming in Nepal. belongs to Zingiberaceae fam- , calcium, and sodium. It is The production of ginger used in cooking for its strong and ily. It is cultivated in tropical and is around 284,000 MT in subtropical part of the world in- spicy aroma which produces a Nepal with production area of cluding Nepal. Ginger plants can sweet flavour. In Nepal, two va- 23,826 ha of land. The major grow to the height of 60 - 90 cm. rieties of ginger, namely Nasse ginger producing districts in Ginger plant bears narrow green and Bosse, are cultivated. Nas- terms of production volume leaves and yellow flowers. Ginger see (with ) is of industrial are Ilam, Salyan, Palpa, is grown from the root of the plant quality and hence, it is preferred Nawalparasi, Morang, Doti, called ‘rhizome’. In Nepal, Gin- for medicines and ginger powder. Kailali, Tanahu, Surkhet, ger plantation is usually done in Bosse (with less fiber), on the Sindhupalchok, Syangja, Makwanpur, Sindhuli, and Feb/March during the monsoon other hand, is preferred fresh and Kaski. season. After certain time period is regarded as premium quality. of plantation, shoots usually die Ginger Products from Nepal 19

General Usage of Ginger Processing and Value Ginger has a wide usage at different parts of the world but general Addition usage can be classified into 3 broad categories - Flavour in foods and In Nepal, Ginger farming is mostly drinks, Herbal Medicine, and fragrance. Specific uses and benefits done using traditional methods. can be listed as follows: These involve scarce use of ma- chineries and are dominant use General Use Health Benefit of physical labour. It is also pro- duced organically; farmers do Ginger is a common spice It has powerful anti- not use any kind of on in Asian cuisine. It is also inflammatory and antioxidant their ginger crop; instead, they used as a condiment in salad properties. prefer to treat their seeds with dressings, ketchups, bio-fungicides and bio-pesticides. sauces, soups, and pickles in Ginger is consumed in various the western cuisine. forms such as fresh, dried, sliced, In drinks, fresh ginger pieces It strengthens immune system. pickled, powdered, and oil forms. are soaked in boiling water When ginger is processed, the to combine ginger tisane with first product obtained is ginger oil. honey to tone down the spicy After that, the processed ginger is taste. dried, sliced, or powdered. About It is an essential component It can control blood and 75 % of Nepali ginger is traded in for making a medicine oil cholesterol level. fresh form, while the remaining used in aromatherapy mostly 25% is traded in processed form, in countries like Japan, UAE especially as Sutho (dried ginger) and India. It is also used in and powdered ginger. massage oils and during spa treatments. Market Situation Nepal is the 4th largest producer It is traditionally used in skin It can reduce muscle pain and as well as exporter of ginger af- care treatment as anti-ageing, nausea. ter India, China, and Indonesia. purifying, cleaning and In fiscal year 2017/18, Nepal ex- moisturizing agent. ported ginger and its products worth approximately NRs. 772 million. India is the largest desti- nation for Nepali ginger; India oc- cupies more than 99% share in total exports from Nepal. Growing global demand for various pur- poses, high demand of ginger in ayurvedic medicine, and low price compared to other countries have created scope for the expansion and development of Nepali ginger farming. 20 Products from Nepal Tea

TEA

Product Highlights Type Camellia assamica (CTC) tea, (Orthodox) tea Plantation Area 14 districts (Major districts- Ilam, Jhapa, Panchthar, Terhathum, and Dhankuta) Number of Commercial Farms/ 9236 Farmers Number of Industries 113 Major Export Destinations India, Germany, Russia, Czech Republic, China, Japan Export Value in 2017/18 NRs. 3.25 billion tea has emerged Export Volume in 2017/18 15,684 tons as a booming subsector of Product Feature rapidly growing. Tea plantation the economy, Tea is considered to be the most started in Ilam and Soktim and booming sector in Nepal. From has received a number of differ- generating the early 1990s, after economic ent interventions from Nepal gov- significant liberalization and introduction of ernment for its promotion includ- domestic privatization policies, tea planta- ing the establishment of Nepal tion and production have been Tea Development Corporation employment. Tea Products from Nepal 21

(NTDC). Government of Nepal used from each branch of the tea Production site even declared five districts - Ilam, plant. The term ‘Orthodox’ simply The major tea production districts Jhapa, Panchthar, Dhankuta, and refers to a traditional production within Nepal are Ilam, Jhapa, Terhathum - as ‘Tea Zone’. Over process in which tea leaves are Panchthar, Terhathum, and Dhan- the last two decades, tea has plucked and partially dried, rolled kuta which are mostly located in emerged as a booming subsec- and then fermented which gives the Eastern Development Region tor of the economy, generating them a light colour, a unique within provinces 1 and 2 of Nepal. significant domestic employment. aroma, and a fruity flavor. Ortho- Some other tea plantation areas This sector has been employing dox tea usually receives a higher include Taplejung, Sankhuwasa- more than 70,000 people, both price in the market than CTC tea va, Dolakha, Bhojpur, Ramech- low-skilled and high-skilled work- due to its superior quality, market hap, Lalitpur, Morang, Sindhu- ers, directly or indirectly across demand, and higher cost of pro- palchok, and Nuwakot.There are the country. duction. several other districts in the mid- Camellia assamica for crush, Different specialty are hill and the mountainous regions tear, and curl (CTC) tea and also produced in Nepal which are which are being observed as po- Camellia sinens is for orthodox as follows: tential tea plantation areas. tea are two genres of tea that are grown in Nepal. These tea • Himalayan Gold/Golden • plants are usually grown at an • altitude between 3000 – 7000 • Ruby black tea • Japanese Green tea feet in Nepal. Generally, CTC • Black Pearl tea • Hand-rolled and tea is grown at the low altitudes • tea handcrafted tea or on the plains of Terai. For manufacturing CTC tea, tea Scenario of Tea Plantation in Major Districts of Nepal leaves have to be pass through District Number of Tea Percentage a series of cylindrical rollers that farms/farmers has hundreds of sharp teeth to crush, tear, and curl the tea Ilam 5,598 60.6 leaves to small, hard pellets. Jhapa 1,601 17.4 Orthodox tea is grown primar- Panchthar 772 8.4 ily at high altitudes, especially in eastern mid-hill regions. For Dhankuta 318 3.4 producing high-quality orthodox Terhathum 317 3.4 tea, top two leaves and a bud are Others 630 6.8 Total 9236 100 Source: Tea farming survey 2075, Tea and Coffee Development Board 22 Products from Nepal Tea

Tea produced in Nepal is exported to almost 35 different countries. India is the primary trade partner who Plantation and Production situation Currently, commercial tea plantation has been running in 14 occupies almost districts involving 9236 number of farms. Among them 98.8% (9,127 88% of Nepal’s farmers) are individual, while 1.2% (108 producers) are institutional. Tea plantation covers 28,241 hectares of land with the highest total exports. area- 7195 hectares - in Jhapa and the lowest area- 25 hectares - in Morang. The number of tea farms in Ilam is the highest; it occupies 60 percent of total farms. The majority of tea farms are less than 1 Future Prospects hectare. Regarding the manufacturing, 113 industries are involved In the world market, the demand for the production of tea. These industries combined have a for organic and highland tea is production capacity of 52 thousand metric tons, but currently, they very high. As Nepal has good cli- are producing 18 thousand 9 hundred metric tons of tea only. matic conditions, abundant cheap labor, and rising trend of tea-con- sumption, the market potential of Market Situation Tea produced in Nepal is exported is very high. A recent Tea is a globally traded commodi- to almost 35 different countries. survey on tea cultivation revealed ty and a popular beverage among India is the primary trade part- that around 64 percent of farm- the world consumers due to its ner who occupies almost 88% of ers were satisfied with their job, recognized benefits for health and Nepal’s total exports. Nepal usu- meaning that tea cultivation has wellness to the consumers. The ally exports high-value orthodox higher profit margin than other major portion of the tea produced and organic orthodox tea in other crops. Awareness and skill de- in Nepal is consumed locally in countries which include Germany, velopment, certification of organic the domestic market. The top 5 Czech Republic, Russian Federa- tea, and improving the processing tea importers in the world in 2017 tion, China, France, United States, and storage system would raise were , Russia, USA, UK, Japan, Canada, and Ukraine. Ne- the production as well as market and Iran, while China, India, Ken- pal exported 15.6 thousand tons of demand of Nepali tea in the world. ya, Sri Lanka, and Vietnam were tea worth NRs. 3.25 billion in Fis- the top 5 exporters. cal Year 2017/18.

Export Volume and Value of TEa Fiscal Year 2013/14 2014/15 2015/16 2016/17 2017/18 Export Volume (In tons) 11,395 11,142 13,289 11,745 15,684 Export Value (In billion NRs.) 2.02 2.00 2.40 2.50 3.25

The collective trademark given for Nepali Orthodox tea is “NEPAL TEA, QUALITY FROM THE ”. This trademark assures that the tea is produced in high altitudes ranging from mid-hills to high-hills of Nepal, which is organic by default. MAPs Products from Nepal 23 Medicinal and Aromatic Plants (MAPs)

Product Highlights Type MAPs Production Area All over the country (Typical high value MAPS are in Himalayan range) Fiscal Year Major Export Destinations India, China, Pakistan, Bangladesh, 2013/14 2014/15 2015/16 2016/17 2017/18 , UAE, Japan, South Korea, Germany, France, Italy, USA etc. Export Volume (In tons) 11,395 11,142 13,289 11,745 15,684 About 700 species Export Value in F.Y. 2017/18 NRs. 1.13 billion Export Value (In billion NRs.) 2.02 2.00 2.40 2.50 3.25 of plants are Number of MAPs related More than 100 company reported to have medicinal properties and around 85 species are traded internationally. 24 Products from Nepal MAPs

Product Feature Nepal is very rich in bio-diversity which offers a huge potential in utilizing and commercializing Medicinal and Aromatic Plants (MAPs). About 700 species of plants are reported to have me- dicinal properties and some of them are aromatic. These plants have been used as traditional ayurvedic medicines in Nepal for many centuries. Various parts of MAPs have been used as medi- cine, food, perfumes, and cos- metics around the world. Trading of medicinal herbs is a part of subsistence livelihoods of peo- ple, especially those living in high Himalayas. The organized processing of tion, production, and trading of (Cinnamomumtamala),Timur medicinal and aromatic plants MAPs. Around 85 MAPs species (Zanthoxylumarmatum), and Yar- started with the establishment of are traded internationally. How- shagumba (Cordyceps sinensis). state owned Herbs Production ever, numerous other species are These MAPs made up more than and Processing Co. Ltd. (HPPCL) traded through indirect channels. 80% of the total export. in 1981. Thereafter, some pri- About 112 distillation units are in vate companies have also been operation for the distillation of me- Some Major Traded MAPs actively involved for the produc- dicinal herbs across the country, 1. Chirayito tion and processing of medicinal most of which are concentrated in plants. Nepal Herbs and Herbal (Swertia chirayita) the Terai region. These distillation Chirayito is a biennial/perennial Products Association (NEHHPA) factories are distilling both culti- herb growing to a height of 60 to is an umbrella organization of vated and wild medicinal plants. 150 cm. It is especially grown in Nepali herbs collectors, produc- About 21 types of essential oils moist areas. It is available at al- ers, manufacturers and traders of of about 75 tons annually are titude ranging from 1500 to 3000 MAPs and non-timber forest prod- produced commercially in Nepal. meter, especially in Eastern and ucts, which accounts for more Only around 10% of crude herbs Central region.The whole plant is than 100 companies involved in and essential oils are consumed harvested and traded but espe- the business. Natural Products inside the country. cially the root is used in medicine. Research Laboratory (NPRL), the A recent report disclosed by It is commonly used for the treat- government authorized body, is The Physikalisch-Technische- ment of fever, bronchial asthma, responsible for testing/analysis of Bundesanstalt (PTB) suggests and liver disorders. The leaves MAPs and issuing the recommen- that the most traded MAPs include and the stem are chewed, or al- dation letter for export. Chirayito (Swertiachirayita), Jata- ternatively they are boiled with mansi (Nardostachys grandiflo- water and drunk for the treatment Major MAPs and their ra), Kaulo (Perseaodoratissima), of . Distribution Kutki (Neopicrorhizascrophu- In Nepal, although tropical and lariiflora), Majitho (Rubiaman- 2. Jatamansi sub-tropical regions possess the (Nardos- jith), Padamchal (Rheum aus- highest share of MAPs, the high- tachys grandiflora) trale), Pakhanved (Bergenia Jatamansi is a perennial herb value medicinal herbs are found ciliata), Rittha (Sapindusmu- that has a height of about 10 to in alpine and sub-alpine regions korossi), Rudrakshya (Elaeocar- 60 cm. It yields fruits from Octo- which have high market potential. pus sphaericus), Satavari/Kuri- ber to November. It is available in It is estimated that about 250,000 lo (Asparagus racemosus), the high Himalayasin the altitude people are involved in the collec- Satuwa (Paris polyphylla),Tejpat ranging from 3600 to 5000 me- MAPs Products from Nepal 25

used for the treatment of gastritis, worms, fever, and bile related ail- ments. It is also used as a tonic for the heart.

5. Majitho (Rubiamanjith) Majitho is a trailing herb charac- terized by its spiny stems and branches. It is available at altitude ranging from 1200 to 2700 meters throughout Nepal. Root and stem are the tradable parts. Its root is enriched with chemicals called Alizarin and Purpurin. This plant is used for the treatment of heart attack, ulcer, and skin related dis- eases. Its stem and petioles are used as antidotes to Cobra and scorpion bite. ter, especially in rocky hill sides, 4. Kutki (Neopicrorhiza grazing areas, and forests of Kar- scrophulariiflora) nali zone. Rhizome of this plant Kutki is a perennial herb having contains special medicinal prop- strong and long rhizomes.It is ertiesthat can cure gastric, ane- available at altitude ranging from mia, and urine related diseases. 3600 to 4800 meters, especially Rhizome and roots of Jatamansi in moist stony slopes and for- are also used to extract a high- ests throughout Nepal.The plant value essential oil which is used is harvested between November to manufacture cosmetics and and December. The traded part perfumes. are rhizome and root. Its rhizome is brown in color and about 60 cm 3. Kaulo long. The taste of dry Kutki piec- (Persea odoratissima) es is a little sour and bitter. It is Kaulo is a medium sized tree. It is found at the altitude ranging from 1500 to 2100 meter throughout Nepal. Its brownish red bark is traded in small pieces. Kaulo dust is known as Jiket powder in the market. This plant is used to man- ufacture incense. Its bark is sticky in nature and works as an adhe- sive when it is mixed with water.

26 Products from Nepal MAPs

to 3200 meters, especially in 9. Yarshagumba moist and damp hilly areas. (Cordyceps sinensis) Its tradable part is its aromatic Yarshagumba is a unique fungus brown underground stem which which grows on a caterpillar. My- has fine roots. The stem con- celium develops inside the body of tains a chemical called Berge- a larva and absorbs the food from nia-c-glycoside which is used larva. When the larva dies, black- to prepare medicine for Cancer. brown colored, 5-8 cm long, repro- Its rhizome is used for the treat- ductive part emerges from head of ment of dysentery, fever, and the larva. It is spread throughout kidney diseases. In Ayurveda, it East to West Nepal from 4200 to 6. Padamchal is often used for treating cough, 5000 meters altitudes inhigh Him- (Rheum australe) heart diseases, and stomach- alayan grasslands. It is more dom- Rheum austral is a perennial ache. inant in the western Himalayas herb that grows about 1 meter to of Nepal. The suitable harvesting 3.5 meter high. The root of this 8. Timur (Zanthoxylum time for this Caterpillar Fungus is plant is called Padamchal, and armatum) from last week of May. Harvest- its stem is called Amalved. It is Timur is a small plant; it is about ing period is only about 15 to 20 found at altitude ranging from 3 m high with stipular spine at days. Caterpillar Fungus is used 3200 to 4200 meters, especially the base of its leaves. Fruits as medicine for gaining energy in the grasslands of mountain- are spherical and red in color and strengthening memory power ous region throughout Nepal. The when they are ripe and they and blood circulation of the body. tradable part is rhizome, petiole turn black or brown when dried It is used in various medicines to of its leaves, and the leaves. Rhi- and preserved. It is available in cure kidney, heart, and blood re- zome and petioles are used as hilly regions throughout Nepal in lated diseases. It is also used for medicine for Diarrhea, Gout, and the altitude ranging from 1000 treating Asthma, spinal related Epilepsy. The leaves and stem to 2500 meters throughout Ne- problems, Joint aches, even AIDs, are also eaten as pickle in raw or pal. It is abundant in hilly areas and Cancer. boiled form. of Mid-western Nepal. The fruit of Timur is used as a medicine for headache and toothache. It 7. Pakhanved is also used as spice and pesti- (Bergenia ciliata) cide. Essential oil extracted from It is a perennial herb that grows this plant is also used for cos- to about 30 cm. It is available metic materials and medicinal at altitude ranging from 1600 purposes.

All Fabrics, Textile, Yarn, and Rope Products from Nepal 27

All Fabrics, Textile, Yarn, and Rope

Product Highlights Type Yarns and Textiles Manufacturing Area Terai belt and major cities Major Export Destinations India, South Korea, Turkey, Germany, USA, Australia, , etc. Export Value in F.Y. 2017/18 NRs. 11.65 billion Nepal has a rich history of textile production, which is more than one thousand years old. 28 Products from Nepal All Fabrics, Textile, Yarn, and Rope

Product Feature and finally dyeing, processing, MT. in 143 hectares of Textile and garment cloth indus- and finishing of textiles are in in- land. For the same year, Nepal tries are the backbone of the fant stages. Mass production of exported cotton worth NRs. 12 manufacturing sector of Nepal. cheaper textiles in other countries million, while import value was Nepal textiles include a wide has been the major challenge for NRs. 4.39 billion. Nepal is import- range of products like clothing, hand-made Nepali textile. Some ing the raw materials for cotton carpets, bags, and blankets, es- major fabrics and their uses are textiles from India, China, and pecially made of natural plant and briefly explained below. other countries to meet the grow- animal materials. Textiles from ing domestic demand. plant include fabrics such as cot- Cotton fabrics ton, jute, allo, and , and tex- Cotton (genus Gossypium ) is the tiles from animal include fabrics cash crop that has high economic Dhaka is a famous Nepali textile like wool and . Some synthetic importance. It is a soft and fleecy used for clothing. It is woven on products comprising , staple fiber that occurs naturally in handlooms by delicate hands, acrylic, and polypropylene are colors of white, brown, pink, and with great skill and effort. Dhaka also manufactured in Nepal. green. The fiber is almost pure comes in brilliant colors and in- Nepal has a rich history of cellulose. Cotton is used for mak- tricate geometric patterns. Palpa textile production, which is more ing varieties of clothes, carpets, district is very famous for Nepali than one thousand years old. and blankets. Cotton production called Dhaka Topi. Palpali People developed a complex in Nepal started from 1972 in Dhaka is famous brand in Nepal. technique of weaving different . Yet, the produc- types of looms to produce varie- tion of cotton in Nepal still lacks Silk Fabrics ties of crafts. Among the various in volume. Only about 50 tons of Silk is considered the queen of activities involved in manufac- cotton is produced annually in Ne- textile fiber and has a high de- turing of textile industry, only pal. Three districts, namely Dang, mand due to its strength, smooth- spinning of has been sat- Banke, and Bardia are the major ness, and environmentally friendly isfactory in Nepal. The extrac- cotton producing region in Nepal. nature. This fiber is used in cloth- tion of fibers, weaving of fabrics, In 2016/17, Nepal produced 127 ing and for many other purposes. All Fabrics, Textile, Yarn, and Rope Products from Nepal 29

This fiber is obtained from silk- resistant, and easily washable. usually used for making bags and worm. Sericulture (silk farming) Generally, this fiber is used in sacks in various industries like ce- in Nepal is characterized by the dresses like trousers, skirts, suits, ment, sugar, food grains, fertiliz- activities of low investment and and jackets. Polyester fibers are ers, chemicals, sand, and seeds. high output. In total, 38 districts resistant to light and weather and This fabric can also be used to in the central mid hills of Nepal can withstand climatic effects. make jumbo bags, ground cov- with altitude ranging from 750- This fiber has good moisture ers, etc. For instance, Jagdamba 1500 meter have suitable condi- transport and hence dries quickly. Synthetic managed by Saurabh tions for silk worm production. Polyester is blended with natural Group and Arihant Polypacks However, the annual production fibers to make varieties of clothes; managed by Golchha organiza- of silk in Nepal is low; it is about especially blending it with cotton tion manufacture PP woven bags 1.8 MT. In 2016/17, Nepal ex- and virgin wool is very popular. which are famously used as ce- ported silk worth NRs. 1.1 million, Acrylic is a man-made synthet- ment bags in Nepal. while the import was as high as ic fiber which comprises at least NRs. 473 million. The major silk 85% acrylonitrile monomer. This Market Situation consumers in the world include yarn is cheap, warm, and dura- Nepal has high consumption of USA, Italy, Japan, India, France, ble but rough in texture. This fiber all fabrics and textiles. Domestic China, , Switzer- is often used for sweaters and production and export of textiles land, Germany, UAE, Korea, and tracksuits and as linings in other is limited. Nepal imports far larger Vietnam. clothes, as well as in furnishing quantities than it exports. Export fabrics and carpets. destinations for various fabrics Jute, Allo, and Reliance Spinning Mills, Ka- are different. In general, India, Pashmina maladi, Kathmandu is one of the South Korea, Turkey, Germany, Detailed information for these fab- suppliers from Nepal for these USA, Australia, Belgium, Brazil rics is explained in other chapters. fabrics. etc. are the major importers of Nepali fabrics. Nepal exported Polyester and Acrylic Polypropylene Woven various types of yarns and textiles Fibers Fabrics worth NRs. 11.65 billion in fiscal Polyester is a man-made synthet- Polypropylene (PP) fabric is light- year 2017/18. ic fiber which is strong, wrinkle weight and strong fabric which is 30 Products from Nepal Leather

Leather

Product Highlights Type Hides and Skins Production Area Especially in Terai region Number of Manufacturers Around 200 Major Export Destinations Italy, India, China, Canada, Japan, USA, U.K., Israel, and France Export Value in F.Y. 2017/18 NRs. 837.58 million Export Volume in F.Y. 2017/18 13.42 million Sq. ft.

Nepali leather is competitive both in quality and price. Leather Products from Nepal 31

Product Feature leather goods such as jackets, Leather Processing Leather is one of the major ex- handbags, shoes, purses, wal- Leather is formed by the tanning portable items of Nepal. It has let, belts, gloves, and camera of raw hides. Both traditional and a high export potential. Nepali bags. These products have modern tanning techniques are used in Nepal depending upon leather is competitive both in been designed using both tra- the tanneries. Semi-finished and ditional and modern techniques quality and price. Hence, Ne- finished leathers are produced pali handmade leather prod- as per the market require- in the factories but the former is ucts are popular around the ments. The leather industry dominant over the latter. A typical world. Most leather goods in ranks 3rd among the exports traditional tanning process includes Nepal are manufactured from of manufactured goods in Ne- several different steps comprising the processed leather that is pal. More than 200 small and of hide collection, liming, hair made up especially from buf- medium-scale leather-based removing, fleshing, deliming, falo hides and goat skins. industries are registered in Ne- tanning, reducing thickness, Nepal has been manufactur- pal, which are largely concen- softening, and dyeing. ing and exporting a variety of trated in Terai region. 32 Products from Nepal Leather

Market Situation domestic market. The garment Nepal is exporting leather and industry in Nepal also imports leather goods to more than a small amount of good quality 20 countries in the world. The hides for making shoes. leading export destinations for Most of the leather goods leather goods are Italy, India, manufacturers have export China, Canada, Japan, USA, accesses in the international U.K., Israel, and France. Around market. Nepal exported 13.42 80 percent of the leather pro- million Sq. ft. hides and skins in duced within the country is ex- fiscal year 2017/18. The trends ported and remaining 20 per- of export and price are shown cent is used to make footwear in below.

Export Volume and Value of Hides and Skins Fiscal Year 2013/14 2014/15 2015/16 2016/17 2017/18 Export Volume (Sq. ft.) 14,931,583 15,549,787 9,723,137 11,750,052 13,426,278 Export Value 1,392.44 1,339.60 732.03 766.59 837.58 (In million NRs.)

Future Prospects The production of raw materials for leather goods in developed countries have been declining due to decreasing number of cattle productions, but the market demand for leather goods is still high as these items are highly fashion-oriented. To meet the customers demand, developing countries are playing a great role by exporting raw materials to developed countries where finished goods are produced with modern technology. The countries with the fastest growing leather industry such as South Korea, China, Taiwan, Indonesia, and Vietnam are also facing difficulties in supplying sufficient raw materials. The increased costs in china and Around 80 percent of the leather lack of raw materials in developed world have led to some future produced within the country is exported possibilities of leather production and remaining 20 percent is used to make in other countries. Hence, Nepal has greater potential for exporting footwear in domestic market. leather and leather goods. Footwear Products from Nepal 33 Footwear

Product Highlights Type Footwear Production Area Especially in Kathmandu, Biratnagar, , and Number of Manufacturers Around 1500 Major Export Destinations India (99%) and Other countries (Japan, Thailand, China, UK, USA, Belarus, , Israel, Brazil, Kenya, Canada, France, Germany, Nether- lands, Australia, , and ) Around 1,500 Export Value in F.Y. 2017/18 NRs. 1.28 billion companies are producing 30 million pairs of footwear annually and providing employment to 60,000 people. 34 Products from Nepal Footwear

Product Feature Around 1,500 companies are Footwear business is a charm- producing 30 million pairs of foot- ing business in Nepal. Several wear annually and providing em- types of footwear such as sports, ployment to 60,000 people. This leather, sandals, and slippers sector started expanding rapidly are manufactured in Nepal. Foot- after the privatization of govern- wear with outer soles made up ment-owned Bansbari Shoes Fac- of rubber or plastic has high-vol- tory in 1992. Around 30 percent ume production and high export women are working in footwear but low price, while footwear with industry as employees. Only 63 outer sole made up of leather manufacturers produce more than has medium-volume production 70 percent of total production in and medium price but low export. Nepal. Regarding the raw materi- Sports footwear has high volume als, 22 companies are producing of production and medium vol- them inside the country, while 58 ume of price and export, while companies are importing them leather footwear has low volume from abroad. There are four types of production and negligible vol- of manufacturers based on their ume of export. size which are shown below.

Types of Manufacturers

Manufacturers Number Production capacity per day Remarks per manufacturer Large 6 More than 10,000 pairs (e.g. Kiran Shoes Manufacturers manufacturers produces 25,000 pairs of gold star shoes per day) Medium 15 More than 500 pairs manufacturers Small 300 More than 100 pairs manufacturers Micro-level 1200 (500-600 pairs annually) Including manufacturers of natural manufacturers fiber-based and felt-based shoes. Footwear Products from Nepal 35

Market Situation ports. Few quantities of footwear Asia is the hub of footwear pro- have been exported to countries duction, which occupies around such as Japan, Thailand, China, 87 percent of the total production UK, USA, Belarus, Bhutan, Israel, in the world. According to Foot- Brazil, Kenya, Canada, France, wear Year Book 2014, China, Germany, , Australia, Vietnam, Belgium, Germany, and Portugal, and Spain. Only two Indonesia are the top five leading footwear manufacturers currently exporters in the world, while USA, have significant export capacity. Germany, France, UK, and Italy Trade and Export Promotion are the top five leading importers. Centre has been taking care of Nepali footwear industry fulfils skill development training for around 42 percent of domestic footwear manufacturing in Nepal. consumption and the remaining Besides, the growing demand for 58 percent is fulfilled by imported shoes in both domestic and inter- footwear. The growing concern national markets and the com- about fashion and typically cheap petitive price of Nepali footwear products from China and other have opened the door for further countries have raised the import expansion of footwear industry demand in Nepal. Currently, India in Nepal. It is clear that if the pro- has been the major export desti- duction quality and volume are nation of Nepali footwear, which raised, the footwear industry has occupies 99% percent of total ex- high export potential. 36 Products from Nepal Chyangra Pashmina Chyangra Pashmina Product Highlights Type Pashmina Production Area Especially in Kathmandu Major Export Destinations USA, Italy, Canada, UK, France, Japan, Germany, and India Export Value in F.Y. 2017/18 NRs. 2.27 billion

Product Feature Chyangra Pashmina is a genu- ine and high quality product of Nepal made from the finest in- ner wool of the mountain goat lo- cally called Chyangra (Capra Hir- cus).The term pashmina comes from the Persian word “pashm” which means soft, light, and silky. Hence, it is more luxurious, warmer, softer, and durable than other . Pashmina has differ- ent names and qualities across the world based on its origin, e.g., Chyangra Pashmina (Nepal), Mangolian, Cashmere etc. Nepali Chyangra Pashmina is one of the best quality fibers in the world; it is the finest, softest, warmest, and Chyangra Pashmina Products from Nepal 37

lightest wool found in nature. It is tasks such as sorting, spinning, drawn from goats living in cold waving, and dyeing. The produc- places of height 3000 meters and tion of Chyangra pashmina in- above. Now, the trademark of volves more than 25,000 people, “Chyangra Pashmina” has been out of which, majority of the em- registered in 47 countries com- ployees are woman. But nowa- prising USA, Canada, Japan, days, modern technology is also Australia, New Zealand, Singa- being used to manufacture vari- pore, Taiwan, Malaysia, Brazil, ous pashmina products. Russia, China, and all the Euro- Genuine pashmina products pean countries. have exceptionally high quality Extremely fine wool having and high price. However, since diameter of about 13 microns is the products are made from wool collected and woven into yarn extracted from Himalayan goats, using traditional spinning meth- the supply of pashmina has ods. The yarn is then woven into not been sufficient. Nowadays, various Pashmina products such many pashmina manufacturers as shawl, stole, muffler, sweater, import yarn from china, which and blanket. One goat produces is especially made from Mon- around 84-224 grams of wool golian wool. Pashmina yarn is per year. To produce a shawl by sometimes mixed with silk yarn spinning the pashmina, it takes to form the products based on around 15 days. the market demand. Sometimes, The processing of pashmina it is mixed with cotton, silk, and is carried out manually by using synthetic fibers and the buyer a lot of labors. Pashmina wool is should be aware with the quality so delicate that it cannot be spun of products. The genuineness of by a machine. A skilled spinner Pashmina products is reflected in spins only around 20 grams per their price; cheap products may day. The processing involves not be pashmina. 38 Products from Nepal Chyangra Pashmina

Market Situation 5 percent of the total produc- The original pashmina produc- tion in Nepal is consumed inside tion in the world is very limited the country; the remaining 95 as it is produced from the wool percent is exported to interna- The original of Himalayan goats, which is tional market. Domestic market pashmina restricted due to climatic condi- consumes pashmina products tions. China produces around of around NRs. 2.5 billion; in- products have 70 percent of the world’s cash- ternational buyers order prod- exceptionally mere; Mongolia produces 20 ucts worth NRs. 2.27 billion. high quality percent, and the remaining 10 Countries like USA, Italy, percent of is produced is in Af- Canada, UK, France, Japan, and high ghanistan, Australia, India, Iran, Germany, and India are the ma- Value. Nepal, Pakistan, and elsewhere. jor export destinations of Nepali In Nepal, almost all pashmina in- pashmina products. However, dustries are concentrated in the this product is exported to 47 . Only around countries over the world.

Government of Nepal along with the private sector introduced and registered the trademark of Chyangra Pashmina. The manufacturers who cmply with the quality and standards set by the government. The trademark has already been registered in 47 importing countries. Hand Knotted Carpet Products from Nepal 39

Hand Knotted Carpet

Product Highlights Type Knotted Carpet Production Area Especially in Kathmandu Number of Manufacturers Around 200 Major Export Destinations USA, Germany, UK, Italy, Canada, France, China, Australia, Belgium, Export Value in F.Y. 2017/18 NRs.7.08 billion Export Volume in F.Y. 2017/18 530,418 Sq. m.

Product Feature tion, and durability. Nepali car- Knotted carpet is a special hand- pets are of various sizes with Nepali carpets made product of Nepal that is dimensions ranging from 16-inch has unique made by weaving fleece wool. x 16-inch to 9 feet x 12 feet and Nepali woolen carpet is charac- other extra-large sizes. These quality, terized by its exclusive shine and carpets are manufactured with texture, color naturally shading surface struc- 60, 80, 100, 120, 150 knots per ture. This product has unique square inch density and are avail- combination, and quality, texture, color combina- able both in natural and synthetic durability. 40 Products from Nepal Chyangra Pashmina

Carpet Processing The process of production of knotted carpet involves several steps. First, sheep are sheared for wool. Then the wool is washed and dried. The dried wool is then carded by hand to form continuous thread with subsequent spinning. Now the pure white yarn is formed, which is then taken for dyeing. The dyeing process changes the dyes. The raw material for these an export quality carpet was initi- color of the yarn. Usually carpets - high quality fleece wool ated in the early sixties with the spectrophotometer is used - is imported from , New migration of Tibetan refugees. to calibrate a single color. Zealand, and Britain. Because Nepal started commercial ship- After dyeing the yarn, this of its unique features and great ment of the carpet from 1962 is processed for knotting. utility, Nepali carpet has a large with a sample consignment to A special arrangement is consumer base in Europe and Zurich, Switzerland. Nowadays, made on the knotting chair, North America. Generally, such most of the carpet manufacturers which includes traditional loop knots and tensed cotton carpets are used as flooring in are concentrated in Kathmandu. threads that are evenly households, offices, hotels and Around 95 percent manufactur- managed. When the carpet is in many activities such as public ers are Kathmandu-based and completed, it is then trimmed, gatherings and special occasions. remaining 5 percent are outside washed, and dried to get its The art of weaving carpet the Kathmandu valley spread anticipated shape. in Nepal has a very long his- in different districts. Currently, The price of knotted tory. It is an old tradition of the around 200 manufacturers and carpet varies depending on mountainous region of Nepal. 200 exporters are involved in the its quality, size, and design. However, the manufacturing of production and sale of carpets. Chyangra Pashmina Products from Nepal 41

Market Situation Nepali hand-knotted carpet ranks 1st in its overseas export. It has been exported to more than 40 countries. Out of these, USA, Germany, UK, Italy, Canada, France, China, Australia, Belgium, and Switzerland are USA alone the major export destinations. USA alone occupies 45 percent of total occupies 45 export of Nepali carpet. Germany is the second largest market for Ne- pali carpet. Nepal exported woolen carpet worth NRs.7.08 billion in F.Y. percent of 2017/18. The trend of export in the recent five years has been shown total export below. of Nepali carpet.

Export Volume and Value of Woolen Carpet Fiscal Year 2013/14 2014/15 2015/16 2016/17 2017/18 Export Volume (Sq. m.) 607,431 625,437 605,294 503,474 530,418 Export Value (In billion NRs.) 7.38 6.94 8.06 7.29 7.08

USA, Germany, UK, Japan, Turkey are the top carpet/rug importers in the world, while Turkey, Belgium, India, China, and Germany are the top exporters. As Nepal has strength in keeping sheep in large farm houses in Himalayan region, Nepal can specialize in hand-knotted carpet for the production and export. 42 Products from Nepal Coffee

COFFEE

Product Highlights Type Arabica Coffee Production Area 47 districts (Major districts - Gulmi, Lalitpur, Kavrepalanchok, Syangja, Palpa, Lamjung, Gorkha, and Nuwakot) Number of Manufacturers Around 200 Major Export Destinations Japan, Germany, Canada, and South Korea Estimated Total Production 560 tons (annual) Nepal produces Export Volume in 2017/18 260 tons only the Arabica Coffee which is most commonly used across the world Coffee43 Products from Nepal Products from Nepal 43

Product Feature as robusta and liberica, which Currently, 560 tons of coffee is Nepali coffee is regarded as a are not grown in Nepal, hold only being produced annually in 47 dis- specialty coffee having superior about 27 percent and 3 percent, tricts. More than 21,000 farmers quality with less , and is respectively. are involved in its cultivation over organic by default. As it is grown The plantation of coffee in Ne- 2381 hectares of land. It is also in the cold climate of the hilly re- pal was started in 1938 by Hira estimated that 61,000 hectares gions without using inorganic fer- Giri who carried the seeds from of land area is highly suitable for tilizers and pesticides, the taste and introduced in Aan- coffee cultivation in Nepal. The and the quality of Nepali coffee is pchaur of , but the highest amount of coffee is pro- unique compared to the promotion of coffee plantation and duced in Gulmi district followed available in other countries. The commercialization started when by Lalitpur, Kavrepalanchok, Sy- price of Nepali coffee is relatively Nepal Coffee Company (NeCCo) angja, Palpa, Lamjung, Gorkha, higher than Indian coffee due to in Manigram, and Nuwakot. Only small quantity its high quality. Nepal produces was established in 1983. of coffee produced in Gulmi and only the Arabica Coffee which is Coffee is grown between the Lalitpur districts is certified as or- the most commonly consumed altitude of 700 m to 1400 m. The ganic and sold in the international coffee across the world. The mar- best climatic conditions for its cul- market. The trademark of Nepali o o ket share of this type of coffee tivation are 15 C - 24 C tempera- coffee has been registered in the over the world is around 70 per- ture, 1600 mm to 2500 mm rainfall, EU and seven other countries in- cent, while other varieties such and 70 to 80 percent humidity. cluding Japan and Korea. 44 Products from Nepal Coffee

Coffee Processing Market Situation Generally, two methods of pro- Around 70 percent of total cessing, namely dry and wet domestic production is con- The trend processing, are used for the sumed inside the country and processing of coffee. However, 30 percent is exported to the of growth wet processing is the most com- international market. The big- of exports monly used technique in Nepal. gest market for Nepali coffee of Nepali There are four layers of agents is Japan. Other major markets involved in the productions and include Germany, Canada, and coffee both selling of coffee, namely farm- South Korea. Small amounts in terms of ers, collectors, processors, and have been exported to the UK traders. Sometimes farmers and USA. The trend of growth volume and also directly send it to the pro- of exports of Nepali coffee both value is quite cessors. At first, farmers harvest in terms of volume and value is ripe fresh cherries and collectors quite encouraging. In 2017, Ne- encouraging. or farmers sell them to the pulp- pal exported 260 tons of Coffee. ing centres where cherries are In the world market, Europe pulped, fermented, washed, and holds the highest share in the dried to produce dry parchment. global coffee market followed by Dry parchment is then collected North America. The top 7 export- by the processors and hulled at ers of coffee in 2017 were Bra- the central processing unit to zil, Vietnam, Germany, Colom- produce green beans. Coffee bia, Switzerland, and Indonesia, Future Prospects is exported in roasted or green while United States of America, In the world market, the form or sold to the domestic Germany, France, Italy, Japan, demand for organic and market after roasting, grinding, Netherland, and Canada were highland coffee is very high. and packaging. the top 7 importers. As Nepal has good climatic The quality of coffee also re- On the basis of product type, conditions, abundant cheap lies on the operational process- export market is divided into labors, and as the trend of es such as quality of available whole-bean, powder, instant cof- coffee-drinking is rising, water used in the pulping cen- fee, and others. Further, based on the market potential of Nepali coffee seems very tre, fermentation duration, types the processing, the market is di- high. Improvement on land vided into caffeinated and decaf- of pulping machine, facilities management, awareness and available for drying, washing feinated coffee. Nepal has been skill development, certification process, etc. and their manage- exporting only green beans in of coffee, and processing ment in the pulping centre. Gen- both decaffeinated form (around and storage system would erally, producers’ association, 65%) and caffeination form raise the productivity as well cooperative union, and private (around 35%). Similarly, based as market demand of Nepali companies are involved in the on the flavor, the market is cate- coffee in the world. final processing and packaging gorized into flavor and non-flavor. of coffee. The flavor is of various types such as vanilla, caramel, Irish cream, hazelnut, and others.

The collective trademark given for Nepali coffee is “The Himalayan Specialty Nepal Coffee”. The trademark assures that the coffee is organic and produced at high altitudes of Nepal. Vegetable and Vegetable Seeds Products from Nepal 45

Vegetable and Vegetable Seeds

Product Highlights Type Vegetable Production value (annual) Approximately NRs. 45 billion Major Export Destinations India, Bhutan, and Bangladesh Production Volume in F.Y. 3,749,802 MT 2016/17 Vegetables are valuable sources of energy and micronutrients. 46 Products from Nepal Vegetable and Vegetable Seeds

Product Feature Many studies suggest that Nepal is suitable for producing vegetable seed production is varieties of vegetables due to its more profitable than food grain varied land topography and dif- crops. Major production area of ferent climatic conditions. About vegetable seeds is concentrated 200 plant species are consumed in mid-hills and high-hills of Ne- as vegetables in Nepal. Vegeta- pal. National Seed Company Ltd. bles are valuable sources of en- owned by government of Nepal ergy and micronutrients. They is actively working for the produc- are also a major source of in- tion, processing, and storage of come of some farmers. crops and vegetable seeds. Cur- The most common vegeta- rently, there are 15 warehouses bles in Nepal include , established for the storage of cauliflower, cabbage, broccoli, seeds in different locations such tomato, brinjal, onion, garlic, as Kathmandu, , , bitter gourd, Okra, hot pepper/ , Bhairahawa, Nepal- chilli, sweet pepper, cucumber, gunj, , Jhumka, and pumpkin, sweet potato, peas, Nawalpur. The capacity of seed cowpeas, radish, cucurbit crops, storage in all these 15 warehous- beans and rayo. es is 92,000 MT. As of fiscal year 2016/17, The demand for vegetable Nepal cultivated vegetables in seeds in present is around 1,965 277,393 hectares of land which MT. Around 60% of vegetable yielded 3,749,802 MT of vegeta- seeds are produced inside the bles. The productivity per hec- country. However, the seed mar- tare is 13.5 MT. Both the culti- ket lags behind in properly distrib- vation area and yield have been uting improved varieties of seeds increasing for recent 20 years. across the country. It is estimated According to Nepal Vegetable that about 25 percent of the seeds Crops Survey 2009/10, Nepal that Nepali farmers are using produces vegetable worth NRs. needs to be replaced by the im- 45 billion annually. proved varieties of those seeds. Vegetable and Vegetable Seeds Products from Nepal 47

Market Situation in India, Bhutan, and Bangla- Import of vegetables in Nepal desh. As Bangladesh has lim- is much higher than the export. ited land for growing vegetables, Vegetables have high market it needs to import vegetables Vegetables potential both in national and in- from other countries. Simi- have high ternational territories. Especially larly, in some regions of Indian off-season vegetables have border, Nepali vegetables have market comparative advantage for ex- good recognition as these veg- potential both port to India. etables have higher quality than in national and However, Nepali fresh veg- Indian vegetables due to low etables have potential markets use of pesticides and colors. international territories. 48 Products from Nepal Fruit and Fruit Juices

Fruit and Fruit Juices

Product Highlights Type Fruit and Juices Production Area Terai belt and hilly regions Major Export Destinations India, China, and Bangladesh Export Value in F.Y. 2017/18 NRs. 4.76 billion (Juices only) Number of fruit and vegetable Around 150 processing industries More than 100 indigenous fruits and nut species have been found in Nepal. Fruit and Fruit Juices Products from Nepal 49

Product Feature are the primary summer fruits, development of fruits sector. The Varied land topography and cli- and , , plum, , introduction and evaluation of matic regions in Nepal favors pomegranate, walnut, apricot, fruit varieties started in the 1960s Nepal to produce varieties of persimmon, and almond are the when 14 horticultural farms were world’s most important fruits. country’s main winter fruits. established with the assistance More than 100 indigenous fruits There are around 2000 agro- of India. Since then, many com- and nut species have been processing enterprises in Nepal, mercial varieties of fruits have found in Nepal. The southern but only about 150 are fruit and been introduced and developed. part of Nepal is suitable for the vegetable processing enterpris- In 2018, government of Nepal cultivation of tropical fruits such es. A few fruit processing indus- announced the decade 2016/17 as mango, banana, and lychee, tries are producing and export- to 2025/26 as a fruit decade and mid-hill districts are suitable for ing fruit juices. Real and Rio fruit developed Fruit Development mandarin, sweet orange, lime, juices are two popular brands in Project. Nepal Horticulture Pro- avocado, and pear, whereas Nepal produced by Dabur Ne- motion Centre is working on this high hill districts are suitable pal and CG foods, respectively. project. Government has also for apple, walnut, etc. Mango, Real is now India’s number one declared specific fruit production banana, guava, and lychee are fruit juice brand. zones such as apple super zone the four most important tropical After the establishment of (Jumla); Mandarin zone (Syang- fruits of Nepal. Banana, guava, Nepal Agricultural Council in ja, Udaypur, Solukhumbu); Junar pineapple, lychee, mango, or- 1937, numerous governmental zone (Sindhuli); Mango zone ange, sweet orange, papaya, and non-governmental projects (Saptari); Kiwi fruit block (Dola- jackfruit, lemon, and coconut have been implemented for the kha), and Banana Block (Bardia). 50 Products from Nepal Fruit and Fruit Juices

Production Situation Major Fruits Production (In Districts with highest Fruit production in Nepal occu- Metric Ton) production pies 150,000 hectares of land, Mango 266,328 Sarlahi, , Saptari, yielding 993,000 MT in 2014/15 Rautahat, and Jhapa with productivity 8.96 MT/ha. The volume of production and Banana 236,196 Saptari, Jhapa, Morang, the area of cultivation, both, are Kailali, Sunsari, and increasing but the productivity Rautahat has been almost constant for Apple 41,012 Kalikot, Mustang, Rukum, the last 15 years. Major fruits Jumla, and Mugu which are commercially grown Guava 22,371 Kalali, Jhapa, Dhading, in large areas include apple, Taplejung, and Khotang banana, mango, lychee, pa- paya, pineapple, water melon, Papaya 14,137 Parsa, Rautahat, Dang, and citrus fruits (mainly manda- Morang, and Kanchanpur rin, sweet orange, and lemon). Jackfruit 22,344 Terai region Popular minor fruits, which are Pineapple 13,291 Jhapa, Sindhuli, and Kaski cultivated in limited amount of land include local peach, plum, Lychee 36,994 Parbat, Dhading, Morang, persimmon, pear, and apricot. Bara, and Nuwakot Some other varities which are Citrus fruits 218,448 Kavre, Syangja, Gorkha, grown in Nepal aregrape, pine- (Mandarin, Kaski, Panchthar, and apple, pomegranate, avocado, Sweet Orange, Tanahu kiwi, and so on. Nepal produces Lime, Lemon) some unique fruits such as Lap- Pear 34,723 Taplejung, Pachthar, si (Choerospondiasaxillaris) and Bhaktapur, Lalitpur, Bel (Aegle marmelos). Kathmandu Some processing industries in Nepal are supplying fruit juices to national and interna- tional markets. For instance, Market Situation Future Prospects CG Foods (Nepal) Pvt. Ltd. has Fruit demand in Nepal is in- Varied climatic conditions in Nepal provide a unique been producing fruit juices since creasing every year with the rise opportunity to develop many 1998. Currently, it produces in health consciousness among the middle-class population. fruit crops. The demand for more than 30 million packets per fruits is also growing at a fast The domestic production is not year. It produces popular flavors rate due to the awareness of like Alfanso, Mango, Mixed fruit, sufficient to fulfill the growing balanced diet and changing and Pineapple under its brand demand, so Nepal imports fruits dietary habits of the people. name Rio. Similarly, another worth NRs. 6 billion every year. Nepal has potential to export well-known brand, Real has a The current productivity of fruit is fruit and juices to different range of 16 exciting variants of around 9 MT/ha. This may rise countries such as India, fruit juices from the exotic Indian to 15 MT/ha if modern technol- China, Singapore, and Bangladesh etc. It is quite Mango, Mosambi, Guava, Plum, ogy is adopted and access to evident that fruit farming is and Lychee to international fa- information and quality input are increased. The major export far more profitable than other vorites like Pomegranate, To- food crops. mato, Cranberry, Peach, Black- destinations of Nepal are India, currant, Apricot, and Grape. China, Bangladesh, and Bhu- They also produce the basic tan. Nepal exported fruit juices flavors like Orange, Pineapple, worth NRs. 4.76 billion in fiscal Apple, and Mixed Fruit. year 2017/18. Honey Products from Nepal 51 Honey Product Highlights Species Apislaboriosa, Apisdorsata, Apisforea, Apiscerana, and Apismelliferaligustica Production Area Chitwan, Nawalparashi, Rupendehi, Dang, Sarlahi, Kapilvastu, Bardia, Kailali, Pyuthan, and Surkhet Major Export Destinations China, UAE, Malaysia Export Value in F.Y. 2016/17 NRs. 6.8 million 52 Products from Nepal Honey

Product Feature fame in the world. Traditional Ne- Usage and Health Benifits Honey is considered to be the pali honey which is considered of Honey most ancient and traditional in- to be a classic honey made by gredients in cuisines all over the Cerana bees within Terai and It is used as medicinal world. The nature of honey var- mid hill regions of Nepal is very supplement for cold, ies depending on bee species, famous domestically as well as coughs, sore throat, nature of flowers, and the level of internationally. Almost 70% of the headache and diarrhea. technology used in the process- honey production in Nepal is with It is commonly used ing of the raw products. Nepal is the help of wild flora, which is an as ointment for burns, home to five different species of organic produce. Honey is pro- bruises, and cuts. honeybees. Four of them - Apisla- duced between the altitude of 70 It is used for the treatment boriosa, Apisdorsata, Apisforea, meters to 4,200 meters above the of different kinds of illness and Apiscerana - are native. The sea level within Nepal. such as stomach pain, fifth species - Apismelliferaligus- The first initiative of promot- joint pain, eye illness etc. tica - is an Italian species,which ing commercial beekeeping was was introduced in Nepal in 1990. taken by Government of Nepal in Beekeeping or honey harvest- 1970 through Department of Cot- ing is an extremely old practice tage, Industry, and Remote Area. in Nepal. Honey produced within Since then, government and non- the Himalayan range of Nepal is government agencies have made classified as wild honey that is a lot of effort into promoting bee very rare and has a unique taste. species and enhancing honey Therefore, it has received a huge production in the country. Honey Products from Nepal 53

Value added activities Honey produced in Nepal has Honey produced within the Himalayan a unique flavor due to the suitable climatic conditions range of Nepal is classified as wild and the presence of diverse honey that is very rare and has a unique flora for honeybees. A lot of effort has been placed by specific taste. government and development partners for providing technical support, developing soft skill, Market Situation which occupies almost 25% of to- and developing infrastructures Most of the honey production in tal world imports followed by Ger- for improving honey production Nepal takes place in the following many, Japan, United Kingdom, in the country. One such districts: Chitwan, Nawalparashi, France, and China. The major intervention includes the formation of honey producer’s Rupandehi, Dang, Sarlahi, Ka- buyers of Nepali honey include association/cooperatives pilvastu, Bardia, Kailali, Pyuthan, China, , Ma- which bring together the honey and Surkhet. As per the Report laysia, and Japan. producers within a certain area issued by Norwegian Mission in Nepal is still a net importer at one place and work for mutual 2003, Nepal has the potential to of honey. The Trade Map data benefit. These cooperatives work produce almost 10,000 MT of shows that Nepal has imported together for the expansion of honey annually with a capacity to honey worth USD 739 thousand, market, for sharing knowledge, hold 1 million beehives. while it exported honey worth and for the technological According to the Trade Map USD 66 thousand only which innovation of manufacturing and data, global imports of honey means Nepal imports almost 11 processing value chain. These supports also aim to strengthen was worth USD 2.3 billion in 2017 times more honey than it exports. the export potential of the sector which is almost 14% more com- It is an astonishing figure which in the country by coming up with pared to the value of total global presents a huge market oppor- and promoting good beekeeping imports in 2013. The largest buy- tunity within Nepal for locally pro- practices manual to address ers of honey in the world include duced honey. quality issues and abide with the United States of America international standards. 54 Products from Nepal Instant Noodles Instant Noodles

Product Highlights Type Noodles, Pasta, and the Like Production Area , Biratnagar, Banepa, Rupandehi Number of Industries Around a dozen Major Export Destinations More than 40 countries (Major countries- India, Qatar, USA, Bhutan, UAE, UK and Australia Export Value in F.Y. 2017/18 NRs. 834.19 million

Product Feature of fast food because of their Noodle industry is a very prom- reasonable price and ease of ising industry in Nepal with at- preparation. Noodles are gen- tractive domestic as well as in- erally taken as snacks. There Two types ternational markets. Most Nepali are many flavors of Noodles de- of noodles- instant noodles can be eaten pending on the brands of noodle straight from the pack as they companies. white and are pre-cooked. The noodle There are more than15 Noo- brown are packets normally come in 50 dle brands available in Nepal. available in gm, 75 gm, 85 gm and more siz- Two types of noodles- white and es. They are a popular source brown - are available in Nepal. Nepal. Instant Noodles Products from Nepal 55

Wai Wai of CG Foods, Rara of by Gandaki Noodles (Himshree Production Process Himshree Foods, ABC of Smart Foods) in Pokhara. It was manu- The noodle is foods and snacks, and Rumpum, factured with Japanese technol- manufactured through a Preeti of Asian Thai Foods are ogy. In fact, Rara noodle was the series of steps which are as follows: most popular noodle brands in first noodle brand that was manu- Blending: It involves factured in the SAARC countries. Nepal. Other companies such as the blending of various Yoshodha Foods and Pokhara Rara noodle became so popular ingredients such as high Noodles also produce their own that it was able to achieve the quality flour, chicken, brands of noodles. One of the Barcelona Food Award 1986 due shrimp, eggs, sauce, salt big manufacturers, CG foods, to its revolution in the fast food oil, and spices to form manufactures 2100 packets of industry and its decent quality homogenous mixtures. noodles per minute which trans- standards. In 1984, CG Foods Rolling and Cutting: The lates to 40,000 tons of noodles was established and introduced blended mixtures are rolled per year. It has an installed ca- another popular instant brown through rollers to form thin sheets. Then these pacity of 100,000 cartons or 225 noodle- waiwai - which is now sheets are passed through tons of noodles per month. Its the number one brand in Ne- a screw machine to form product, Wai Wai, covers almost pali noodles industry. Similarly, curly shape. Now these 45 percent share in the domestic another popular brand–Mayos - noodles manufactured are noodles market, while Asian Thai was introduced in 2000 by Hima- cut into required size. Foods covers 25 percent. Apart layan Snacks & Noodles Private Streaming and Frying: from these, major brands such Limited in technical collaboration The cut pieces are passed as Golmol, Ru-Chee, Hurray, with Thai President Foods Plc of through an enclosed 2pm, Rumpum, Muskan, Hits, Thailand. In the past few years, streaming chamber and Halchal have significant market around a dozen companies have are steam cooked. These shares in the domestic market. entered the market to satisfy the cooked noodles are sprinkled with soup and are The production of instant noo- varied demands of customers, fried in a chamber which dles in Nepal started in 1981 with indicating that noodle market is turns these noodles golden the introduction of Rara brand rapidly growing. brown. Cooling and Packing: The fried noodles are cooled down busing overhead fans. Now, the noodles are ready for packing. Noodles are packed in plastic wrappers. The packet themselves are packed in cartoons, which are then sent to warehouses from where noodles are distributed to the market. This entire process is carried out by advanced automatic machines. 56 Products from Nepal Instant Noodles

As per the data of World’s Instant Noodle’s Association, Nepal ranks 13th position in 2017 in consuming instant noodles.

Market Situation Instant Noodles industry has China, Indonesia, Japan, India, a promising scope in Nepal due Vietnam, USA, , South to growing urbanization, increas- Korea, Thailand, and Brazil are ing working population, rising the top ten consumers of instant purchasing power, and changing noodles in the world. More than food preferences. Nepali noodle 40 percent of the world’s noodles companies are strengthening consumers are in China. Asia oc- their presence both domestically cupies 80 percent noodle market and globally as demand for in- in the world. As per the data of stant noodles continues to surge. World’s Instant Noodle’s Associa- The major export destinations of tion, Nepal ranked 13th in 2017 in instant noodles include India, Qa- consuming instant noodles. tar, USA, Bhutan, and the UAE. Handmade Paper and Paper products Products from Nepal 57 Handmade Paper and Paper products

Product Highlights Type Handmade Paper and Paper Products Production Area 32 districts in mountainous region Number of Manufacturing Around 200 Industries Major Export Destinations USA, UK, France, Germany, Japan, Australia Export Value in F.Y. 2017/18 NRs. 577.80 million Nepali handmade paper has special feature of resistance to insects. 58 Products from Nepal Handmade Paper and Paper products

Product Feature plant; out of these 55,000 fami- Nepali handmade paper is fa- lies, 80 percent are female. This mous for its unique quality, business has provided income strength, and durability, and has opportunities mainly for marginal special feature of resistance to communities residing in the hills insects. This paper is made from and mountains of Nepal. a special plant called “Lokta” The commercial production which contains long, textured of Lokta paper started from 20th and strong fiber. This plant century. Because of its unique grows in mountainous regions texture and strength, this paper of Nepal at altitudes ranging be- has traditionally been used in tween 1,500 and 3,000 meters legal and religious activities. But above sea level. This plant also nowadays, this paper is used as contributes for the conservation formal papers in banks, courts of soil and environment in vari- and government offices. Inter- ous regions of the country. national export of this paper was Various paper products such started when United Nations as colored and plain paper sheets, Children’s Fund (UNICEF) es- diaries, notebooks, lampshades, tablished a paper products man- photo albums, frames, gift boxes, ufacturing unit at Bhaktapur in bags, greeting cards, wrapping the early 1980s, with production paper, and decorative items are of raw material done in Baglung made from Nepali handmade and Myagdi districts. Since then, paper. Around 55,000 families a few private companies are are involved in growing the Lokta producing handmade papers. Handmade Paper and Paper products Products from Nepal 59

Market Situation Mostly Nepal has been export- Production Situation Every year, handmade papers ing three major groups of products There are around 300 small worth more than US$ 100 million – notebooks, wallpaper and paper and medium sized industries is imported around the world. board, and boxes. The standard registered, however, around 200 enterprises are in France, Japan, United States, paper size is 50 x 75 cm, which operation for the production and Spain are the top 4 import- is generally available in 5, 10, 15, of handmade paper items ers of handmade paper, while 20, and 40 gram weights. Pres- in 32 districts. Major China, India, Thailand, Vietnam, ently, domestic market consumes districts include Taplejung, and Indonesia are the top 5 Nepali handmade paper worth Panchthar, Solukhumbhu, leading exporters. The shares NRs. 300 million per year, while Sankhuwasabha, Terhathum, of imports of the top 3 import- international market consumes Okhaldhunga, Bhojpur, ing countries, namely France, around NRs. 600 million per year. Khotang, Jhapa, Dolakha, Japan, and United States repre- The major export destinations in- Ramechhap, Sindhupalchok, sent 15.8, 14.0 and 12.5 percent clude USA, UK, France, Germany, Dhading, Gorkha, Rasuwa, Jumla, Kaski, Myagdi, Parbat, in world’s total import respec- Japan, and Australia. USA & only Baglung, Bajhang, Bajura, tively. Nepal accounts for only UK are two big markets for Nepali Baitadi, Rukum, Rolpa, 0.7 percent of total exports in handmade paper products. The Jajarkot, Dailekh, and Achham. the world. China and India are former occupied 42 percent of total Lokta plant is found in 55 the top exporters of handmade exports, while the latter occupied districts of Nepal, almost papers and Nepali paper prod- 17 percent in 2015. all of these districts are in ucts are heavily competing with As the demand for ethnic prod- Provinces 1, 3, 5, and 6 of these leading exporters. The ucts in interior decoration has Nepal. However, the collection leading exporters as well as oth- been growing in the world, Nepali of Lokta has decreased er major exporters are shown in handmade products have a good significantly over last 20 years. table below. scope in that market.

Market Situation of Handmade Paper and Paper Products in the World

Countries Products Market Situation Nepal Lokta paper Low / medium end for domestic market and exports China Xuan paper for calligraphy Largest exporter of handmade paper products Low-end, high volume, Western-designed(for handicrafts) India A vast variety of products including Second-largest exporter of handmade paper hemp paper, cotton papers products Low-end, high volume Thailand Mulberry handmade paper (locally Low / medium end, high volume for called saa paper) Vietnam Rice straw, banana fiber, Low / medium end, high volume for tourism paper Indonesia Banana leaf, mulberry handmade Low end, high volume paper Japan Washi, traditional Japanese High end, low volume for domestic market handmade paper 60 Products from Nepal Readymade Garments Readymade Garments

Product Highlights Type Readymade Garments Production Area Kathmandu, Lalitpur, Morang, Sunsari, Bara, Parsa Major Export Destinations USA, Canada, Germany, France, Neth- erlands, UK, Switzerland, Spain, Italy, Australia, India Export Value in F.Y. 2017/18 NRs. 5.97 billion The global demand of garment items is still promising. Readymade Garments Products from Nepal 61

which sent the Nepali garment industry into a difficult situation. The export of garment items was worth around NRs. 12 billion in 2003 but it fell to half that num- ber after the quota system of the US phased out. During early 2000s, around 50,000 people were employed in the garment industries with the presence of around 300 garment industries. 30 percent of total exports of the country were readymade garments; garments were the largest exports of the country. But nowadays, the number of garment industries is around 30 and the number of employment in this sector has been reduced by more than sixty percent. Manufacturing garments is typically a low-skilled job and this sector has been generat- ing mass employment in Nepal. The government of Nepal is de- veloping a Garment Processing Zone (GPZ) in Simara of to promote the export of readymade garments. Nepali readymade garment officially received duty-free status in the Product Feature nature of industry: it is highly US market in 2016, with special Readymade garments are one labour intensive and needs rela- trade preferences for Nepal, and of the top exportable items of tively low investment. is authorized for 10 years. It is Nepal. Garment items such as The development and the intended to help for Nepal’s re- coats, jackets, t-shirts, shirts, growth of the garment industry covery after the earthquake of trouser, jumpers, , in Nepal proliferated when the 2015. Before this provision, the skirts, and slacks with varieties industrialized countries like US US had been imposing an aver- of embroidery, tie-dye, and hand provided quota facility under the age of 16-17 duty on Nepali gar- sewing designs are exported to Multi Fiber Agreement (MFA) ments. With the authorization of many countries from Nepal. in 1974. This facility remained US General System of Prefer- These garment items are mainly till the end of December, 2004. ences (GSP) 2016, Nepali ex- made from cotton and . The protection was dropped due port has been enjoying duty-free A large number of manu- to the provision of World Trade tariff benefits in North America. facturers produce and export Organization (WTO). The quota garment items because of the system was phased out in 2005 62 Products from Nepal Readymade Garments

Market Situation The global demand of garment items is still promising. Garment production is shifting from de- veloped countries to developing countries in recent decades. Ac- cording to the recent report pub- lished by WTO, world’s market of garment exports was $708 billion in 2014. China, Bangla- desh, Vietnam, and India are the top 4 garment exporters in the world, while USA, EU, Ja- pan, , and Canada are top importers. USA is the largest importer of garments in the world, whereas Vietnam and Bangladesh are most rapidly growing countries in manufac- turing readymade garments.

Manufacturing garments is typically Labour Intensive job and this sector has been generating mass employment in Nepal.

Export Volume and Value of Garment Fiscal Year 2013/14 2014/15 2015/16 2016/17 2017/18 Export Volume (In pcs.) - 12,843,729 5,884,597 12,317,335 15,048,821 Export Value (In billion NRs.) - 5.28 5.88 5.30 5.97

Nepal exported readymade garments worth NRs. 5.97 billion in F.Y. 2017/18. It has been more or less constant over the last five years. More than 95 percent of garment items are exported to the international market. The major export market of Nepali garments are USA, Canada, Germany, France, Netherlands, UK, Switzerland, Spain, Italy, Australia, India, etc. Rising labor cost in China and other countries, but still cheap labor cost in Nepal is the basis of potential for enhancing garment industry in Nepal. Semi-precious stone Products from Nepal 63

Semi-precious stone

Product Highlights Type Precious and semi-precious stones (excluding pearls) Available Places Taplejung, Sankhuwasabha, Dhading, Jajarkot, Nuwakot, Rasuwa, Dang, Banke, Bardia Number of Industries A few Major Export Destinations USA, Netherlands, Japan, Australia, Germany, France, China, Switzerland Export Value in F.Y. 2016/17 NRs. 5.97 million Historically, Export Volume in F.Y. 2016/17 31,482 Kg gemstones have been used by elites as ornaments and jewelry. 64 Products from Nepal Readymade Garments

Product Feature Langtang Valley and Ganesh Mountainous region of Nepal Himal (Dadhing). Similarly, inherits a large amount of pre- semi-precious stones are found cious and semi-precious stones. in many districts which include These valuable stones are also Taplejung, Sankhuwasabha, known as gemstones. Histori- Rasuwa, Manang, Dhading, cally, gemstones have been Jajarkot, Dang, Banke, Bardia, used by elites as ornaments and and Nuwakot. However, the jewelry. Generally, these stones commercial extraction of gem- are not only used for beauty stones is not widely practiced and style, but also used for in Nepal. Hence, it is estimated getting their “astrological pow- that around 90 percent of raw ers”. Precious stones such as materials are imported from ruby, sapphire, and topaz, and abroad. The rough stone col- semiprecious stones including lected should be cut, carved, tourmaline, aquamarine/ beryl, and polished to embed in or- garnet, kyanite, quartz crystal, naments and jewelries. Around and jasper are found in various half a dozen large gemstones regions of Nepal. firms in Nepal are dealing with Most of the gemstones are the extraction of precious and found in higher Himalayas and semi-precious stones. The price very few are found in lower Him- of a gemstone is based on its alayas. Precious stones such as looks, color, cut, polish, hard- ruby and sapphire are found in ness, and rarity. Semi-precious stone Products from Nepal 65

brief information about semi-precious stones found in Nepal

Major semi-precious Place of Occurrence Operational Status Prospects stones Tourmaline Sankhuwasabha, Two small-scale Department of Rasuwa, and Manang tourmaline mines are mines and Geology in operation in Daha (DMG) has issued 40 area of Jajarkot and prospecting license and six mines are under 8 mining licenses for development. tourmaline. Aquamarine/Beryl Jajarkot, Kathmandu, Taplejung beryl and and Sindhupalchok aquamarine mines are in operation Garnet Sankhuwasabha and More than six small- 3 prospecting licenses Taplejung scale garnet mines have been issued by have been in operation DMG since last few decades. Kyanite Dolakha, Four small-scale 4 mines are under Sankhuwasabha, Kyanites mines are in development stage. Taplejung, Rasuwa, operation in Daha and DMG has issued 15 Dhading, Jajarkot, and Suneri in Jajarkot and prospecting licenses Achham Barah of Aachham and 4 mining licenses districts for Kyanites. Quartz Jajarkot, Dailekh, Two small-scale 2 mining licenses and Dhadhing, quartz crystals mines 15 prospecting licenses Rasuwa, Nuwakot, are in operation from have been issued by Sakhuwasabha, Ilam, pegmatites in Khejemi/ DMG. and Taplejung districts Sirku (Taplejung) and Raluka (Nuwakot)

Market Situation major export destinations in- Hong Kong, United States, clude USA, Netherland, Ja- Thailand, Switzerland, and pan, Australia, and Germany. India are the leading export- Due to the lack of technologi- ers of precious (excluding cal knowledge, the collection diamond) and semi-precious process in Nepal has not been stones. In 2016/17, Nepal ex- productive. Nepal could im- ported NRs. 5.97 million worth mensely benefit from such of precious and semi-precious stones if modern extraction stones excluding pearl. The technology is introduced. 66 Products from Nepal Silver Jewelry Silver Jewelry

Product Highlights Type Silver Jewelry Market Domestic: almost 50% International: 50% Major Export Destinations USA, Japan, Germany, Switzerland, and UK. Export Value in F.Y. 2017/18 NRs. 154 million

Product Feature Almost all these exquisite prod- Silver Jewelry generally refers ucts in Nepal are hand-made by to jewelry such as earring, ring, local Nepali craftsmen, usually Silver Jewelry bracelet, pendent, and bangles belonging to Shakya and Sunar which have minimum of 92.5% families. The special skill and is considered purity and which may or may not art of the production of silver the prime consist of semi-precious stones. jewelry is transferred from one Silver Jewelry is considered the generation to another genera- handicraft prime handicraft item that Ne- tion. But lately, people from oth- item that Nepal pal exports. Nepal has been in- er castes are also increasingly exports. volved in the international trade getting involved in the produc- of silver jewelry for very long. tion of silver jewelry. Silver Jewelry Products from Nepal 67

Silver jewelry produced in Competitive Advantage Nepal is unique on its own way of Silver Jewelry as almost all the products are Production in Nepal hand-made individually by the • Registered trademarks local craftsmen. Hence, buyers • Skilled and efficient artists feel special owning these hand- and crafts persons made products. Though raw • Unique arts, design, and materials essential for manufac- product development turing the products must be im- expertise ported, there is easy access to • Good access to high quality high quality raw materials such raw-materials as sterling silver, gems, and • Presence and exposure of semi-precious stones. About product in international 10,000 craftsmen are involved markets in producing silver jewelry in • Well established internation- Nepal. This sector has around al export destinations 40% to 50% high value addition in Nepal. 68 Products from Nepal Silver Jewelry

Market Situation For the last few years, the production and export of silver jew- elry in Nepal has been stable. Nepal exported silver jewelry there exists a worth NRs. 154 million in Fiscal Year 2017/18. It is estimated huge prospect that a large portion of silver jewelry is traded through informal channels. The major export destinations include USA, Japan, of continuously Germany, Switzerland, and UK. The trend of export has been increasing both shown below. the production and export of Silver Jewelry from Nepal. Export Trend of Silver Jewelry of Nepal Fiscal Year 2013/14 2014/15 2015/16 2016/17 2017/18 Export Value (In million NRs.) - 211 132 134 154

Several promising markets exist in educated, and they prefer to ensure Global market condition for silver the world for silver jewelry including if the products they are using are jewelry seems favorable and Nepal . New emerging produced andobtained ethically. It is could benefit from such market nations such as Russia, South Korea, suggested that there exists a huge friendlyenvironment especially from and have joined in as prospect of continuously increasing the European Union (EU), United a viable market. The demand for both the production and export of States of America (USA), Japan, and ethical jewelry is growing exponen- Silver Jewelry from Nepal. India. tially. Consumers today are more Wool Product Products from Nepal 69

Woolen Product

Product Highlights Type Woolen Product Production Area High Himalayan region Major Export Destinations Canada, Japan, Europe, USA, and UK Export Value in F.Y. 2017/18 NRs. 9.4 billion

* Export value is calculated as a sum of woolen carpet & woolen shawls Wool is a with a truly green lineage that makes it both sustainable and biodegradable. 70 Products from Nepal Wool Product

Product Feature legionnaires used breastplates Wool is preferred in varieties Woolen products of Nepal are made of felted wool. of products because it makes the completely handmade. The Wool is a natural fiber with a product a natural flame retard- wools are drawn from sheep truly green lineage that makes ant due to natural high presence found in high mountains in the it both sustainable and biode- of nitrogen and water content. northern parts of the Himalayas. gradable. These benefits from When exposed to extreme heat, Depending on the length and environmental standpoint along wool does not melt, drip or stick to grade of the wool, the use of with other natural benefits of- the skin and also produces less wool varies. For instance, wools fered by wool have made the smoke and toxic fumes. graded as micron 38 and length products made from pure wool Another important feature with 4-7 are used for woolen carpets. reputed worldwide. Despite its the wool products is the use of Woolis used for blankets, horse simple composition, wool has wool makes the product durable. rugs, saddle blankets, carpet- obtained a reputation of be- The average life of a wool garment ing, felt, wool insulation, and ing versatile: It is used to fulfill is 2-10 years, compared to 2-3 upholstery. Wool felt is used complex product requirements years of garments made from oth- to pad piano hammers and is i.e. apparel and fashion, out- er fibers. In addition, wool offers an also used to absorb odors and door and sportswear, flooring, environment friendly benefit of be- noise in heavy machineries interior textiles, automotive and ing re-usable and re-cyclable. After and stereo speakers. The an- aviation, etc. Wool is an entirely the sufficient use of wool products, cient Greeks lined their battle renewable product as sheep wool can be easily decomposed in helmets with felt, and Roman produce new fleece every year. soil in a matter of few years. Wool Product Products from Nepal 71

Market Situation market. But making them is a Major woolen products made time-consuming process. Usu- and demanded in International ally international buyers place Significant market include Woolen Sweater, their orders in the spring so that proportion of Woolen Knitwear, Woolen Muf- manufacturers get 3-4 months fler, Woolen Gloves, Woolen to produce them and dispatch Nepali wool Socks, Woolen knitwear, them. This ensures that the is exported woolen accessories, and woolen products can be made available to other leg warmers. Major International in their local stores before the markets for woolen products of beginning of the winter. international Nepal include Canada, Japan, For Nepali woolen carpet, destinations. USA, Europe etc. Significant major export destinations in- proportion of Nepali wool pro- clude Germany, USA, Belgium, duction is exported to other in- Britain, Turkey, Switzerland, Ja- ternational destinations. pan, Spain, Canada, and Italy. As woolen products of Nepal Germany and USA are the ma- are entirely hand-woven which jor buyers. Germany alone ab- offer them a unique competitive sorbs more than 45% of the total advantage in the international carpet export 72 Products from Nepal Flowers

Flowers

Product Highlights Type Flower Major Floriculture Site Kathmandu, Lalitpur, Morang, Bhaktapur, and Kaski Major Export Destinations India, USA, Netherlands, Germany, , UK, China, Japan, Thailand, UAE, and Qatar

Almost 6500 different species of flowers are found in Nepal Flowers Products from Nepal 73

Product Feature Major Flowers in Nepal Dracaena, Thuja varieties, Nepal is rich in biodiversity; al- More than 6500 different spe- Ficus, Arecuria cookie. most 6500 different species of cies of flower including orna- • Shrubs and Climbers: Rose, flowers are found in Nepal. This mental plants and 380 spe- Bougainvillea, Bleeding utter richness in biodiversity is a cies of orchid plants are grown heart, Begonia, Venista, Gar- result of favorable climate and across Nepal. The usual type denia (Indrakamal), Nirjai, suitable soil within Nepal. Cut of flowers available in Nepal is Camellia, Hibiscus, Azalea, flowers, flowers that have been commercially grown as season- and Jasmine varieties. cut off from their stem and that al flowers, ornamental plants, • Cut-flowers: Gladiolus, Ros- are mostly used for decorat- cut flowers, shrubs, bulbs, and es, Carnations, Gerbera, Tu- ing purposes, have offered the foliage. berose, Cymbidium Orchid, most promising business oppor- • Seasonal Flowers: Marigold, Aster, Lily, Tulips, Lemo- tunity. The Cut Flower industry Zinnia, Dahlia, Petunia, Pan- nium. has been achieving more than sy, Verbena, Antirrhinum, • Bulbs: Gladiolus, Gloriosia 10 percent of growth in annual Calceolaria, Cineraria, Ce- spp., Zephyranthus, Hae- production every year. Cut flow- losia, Salvia, Dianthus, and manthus Multiflora (football er business was initially central- Calendula. lilly), Polyanthus (Rosani), ized within Kathmandu valley • Perennial Flowering Plants: Lycorisaurea, Eucharis gran- only, but lately it is successfully Poinsettia, Azalea, Gerbera, diflora, Achimenes, Kuku- being adopted by farmers in Carnation (Pot varieties), Or- rma, Calladium, Amaryllis other locations as well. chid, Geranium, Hydrangea, Hippeastrum, Freesia spp., Camellia. Lycoris lily. • Ornamental Plants (Non- • Foliage: Asparagus, Ferns, flowering): Cycas, Tupidi- Nephrolepis, Cordifolia, anthus, Phoenix, Palm vari- Pulmosus, Junipers, Thuja eties, Nolina, Phylodron, etc.

The Cut Flower industry has been achieving more than 10 percent of growth in annual production every year. 74 Products from Nepal Flowers

Market Situation Thus, most of this business is Flower industry has a huge located within Kathmandu val- growth potential in Nepal. Since ley and other major cities of the early 90’s, flower indus- Nepal. In addition, Kathmandu try has undergrown a massive valley offers the best topologi- change, turning into a modern cal and climatic condition to lucrative industry as a result of grow the best quality flowers. huge increase in demand inside Nepal still imports flowers from and outside Nepal. This rapidly India in substantial quantity. rising demand has attracted This means there is a tremen- investors in the industry. With- dous opportunity of growth for in Nepal, primary market for Nepal flower business to re- flowers include Kathmandu place this import with domestic valley, Pokhara, Butwal, Birat- product. nagar, , Janakpur, He- Nepal mostly exports the tauda, Narayangadh, Bhaira- produce in the form of bulbs, hawa, , Surkhet, and live plants, cut flowers, and foli- Dhangadhi. age. Primary International mar- The primary domestic buy- ket includes India, USA, Nether- ers include the star hotels or lands, Germany, Denmark, UK, resorts, big business houses, China, Japan, Thailand, UAE, and international organizations. and Qatar. Handicrafts Products from Nepal 75 Handicrafts Product Highlights Type Handicrafts Production Area Mostly in Kathmandu Major Export Destinations USA, Britain, India, Canada, Germany, Japan, Italy, France, Australia, Nether- lands, and China Export Value in F.Y. 2017/18 NRs. 5.21 billion

Product Feature paubha (thanka), silver and gold Nepali handicrafts are widely jewelries, stone carvings, considered a representative of crafts, bags and accessories, Nepali heritage. They represent basketry products, filigree prod- the great traditions and proud ucts, handmade paper products, cultures of the great Himalayan handloom products, ceram- . World popu- ics, decorative items, leather lation appreciates Nepali handi- products, horn and bone prod- crafts for rich art, crafts, and ori- ucts, macramé (knot crafts), ental architecture. religiousgoods,crazy/fancy Nepali handicrafts are labour hats, ethnic dolls, paintings, intensive. Individual skills and giftware, ethnic costumes, hand techniques of manufacturing knitwears, incense, natural but- these products are passed over tons made of small tree branch, from generation to generation. stones, bones and horns, natu- Not only the skills and tech- ral fiber products (apparel and niques, but social, religious, and non- apparel products made of cultural values are also passed hemp and allo), puzzles and between the generations. toys, etc. Some handicrafts are Thus, for local manufactur- explained in detail on other pag- ers in Nepal, it is not just a job es of this booklet, while some but, it’s a way to preserve the other important handicrafts are natural heritage of their country explored below. as well as preserve their local cultural and traditional values. Most of the handicrafts manu- facturers in Nepal traditionally belong to Newar communities of Kathmandu valley, particu- larly Bajracharya, Shakya, and Chitrakar castes. As per the Handicraft Asso- ciation of Nepal (HAN), Nepali handicrafts include almost 42 different group of products such as metal crafts (statues and utensils), pashmina products, 76 Products from Nepal Handicrafts

Wooden Handicrafts are skilled in mostly produced by people Wooden handicrafts are the arts. Their houses are made of who live in and around the pride of Nepal that represent wood and carved.”(Wang Hsu- city of Lalitpur (Patan). These our ancient history and rich an Tsang: Memoirs. AD 643). crafts are usually produced us- culture. They are one of the im- These wooden handicrafts are ing wax method which is a very portant parts of traditional archi- mainly made of wood named popular ancient way. In this tecture of Nepal and have been locally as “sal, agrath, or- method, craftsmen first pre- used, since many centuries chapa”. They are widely avail- pare a wax model, cover it with ago, in monasteries, temples, able around the country. These varieties of clay, heat the piece palaces, and residential homes. beautifully crafted wooden to melt the wax, extract liquid One of the best and well-known handicrafts can also be seen in wax to create cavity, pour met- example of a monument entirely buildings in and around Kath- al into cavity, cool it, and trans- made up of wood is the tradi- mandu valley. All available sur- late the original wax model into tional architectural site named faces of wood including doors, a metal model. Thus created Kasthamandapa located near windows, cornices, brackets, statues are rough. They are Hanuman Dhoka in Kathmandu. and lintels were beautifully then smoothened and chiseled The history of woodcarving is shaped and formed and lavishly for precision. very old but a clear beginning carved in intricate patterns of Most of these metal sculp- date is unknown. In some docu- geometrical, floral, human, and tures are made by people of mentaries, it is mentioned that animal forms. specific caste i.e. Tamrakar, there was a presence of some Shakyas, and Swarnakars of kind of woodwork in Metal Handicraft Kathmandu. These skills are period (300 – 879 AD). In 643 Another famous type of handi- passed from one generation to AD, a Chinese traveler named crafts are metal crafts such as another and these skills are so Wang Hsuan Tsang had men- metal statues of popular mo- special and the results are so tioned about the beautiful wood tifs of Hinduism and Buddhism perfect that the products are sculptures used by Licchavis as well as utilitarian utensils. highly valued and appreciated in his travel log. He wrote,”The These metal handicrafts are in the international market. Handicrafts Products from Nepal 77

Government of India & People’s Republic of china offers incentives to promote export of Nepali handicrafts.

Market Situation The export of Nepali handicrafts began from mid-1960. Handicrafts are Nepal’s largest overseas export items after readymade garments and carpets. Handicraft products include numerous different product line including metal handicrafts, woolen handicrafts, thankas etc. Around 20 handicraft products produced in Nepal such as pashmina products, woolen goods, silver Thankas is laid with silk. They generally jewelry etc. are exported from The word “Thanka” is derived have a long life but need to be Nepal to almost 85 different from an old Tibetan word: stored in dry places to preserve countries. Major international “Than” which means plain cot- them for a long period. buyers of Nepali handicraft ton cloth and “Ka or Ku” which Historically, Thankas became products include USA who alone means deity. So, Thankas are popular when the art was first purchases almost 25% of total export of handicraft products. the paintings done on a cotton exported to Tibet by princess Other international destinations cloth and paint used usually (Harit Tara – daughter include Britain, India, Canada, includes varieties of minerals of King Ansuvarma of Nepal) Germany, Japan, Italy, France, such as gold, lapis-lazuly, mer- who was married to SronTsan- Australia, Netherlands, and China. cury-oxide etc. The paintings Gampo (ruler of Tibet) in the 7th Nepal government increased contain images of varieties of century. It is believed that the the cash incentives to exporters of motifs and element belonging to word “Thanka” has come from Nepali handicrafts to five percent either Hindu or Buddhist religion the Tibetan word “thang yig” from two percent starting from fiscal such as Life of Buddha, Wheel which means “a written record.” year 2018/19 to support them. of life, Tara, Mandala etc. It is widely used by monks as In addition to this, Government of India and Government of Thanka is very different from a teaching tool to illustrate the People’s Republic of China are regular oil or acrylic painting. It life of Gautam Buddha, Lamas, also supportive of Nepali handicraft is first painted or embroidered other gods/goddesses, and Bo- production and export. They with a picture, then a fabric is dhisattvas. offer 15 percent and 22 percent attached, and finally a cover incentives respectively to promote Nepali handicrafts. These countries are also the major buyers of Nepali products. So, the market for Nepali handicrafts remains lucrative. 78 Products from Nepal Lentils Lentils

Product Highlights Type Dried Beans, Edible legume Production Area Commercial production concentrated in lowland Terai region Total Production 254,308 MT Major Export Destinations Bangladesh, Singapore, India, and UAE Export Value in F.Y. 2017/18 NRs. 1.01 billion Export Volume in F.Y. 2017/18 10,450 MT Lentils are the largest exported item among agricultural commodities from Nepal. Lentils Products from Nepal 79

Product Feature Lentil Production Rahar, etc. The most Lentil (Lens culinaris) is a short in Nepal common variety grown bushy annual legume which Lentil is primarily in Nepal is Masoor. has small purse like pods that cultivated in the Terai Nepal produced region of Nepal in 254,308 MT lentils in contain 1 or 2 lens-shaped rotation with 206,969 ha area of seeds. It has an important role based on the level of land in 2016/17. The to maintain food and nutritional residual soil moisture volume of production security. It contains low fat, low after harvesting rice. has been increasing sodium, and high amounts of The usual production over the last 10 years. protein. It contains soluble and cycle starts in mid- The majority of farmers insoluble fiber, complex carbo- October or November of lentils in Nepal are hydrates, adequate minerals, when it is planted and small holders who and vitamins. Lentils are the ends in March or April cultivate only around largest exported item among after it is harvested. 0.2 ha of land. The Nepal has been Majority of domestic agricultural commodities from manufacturing and lentils production is Nepal. Nepal trade Integration exporting varieties of consumed within the Strategy (NTIS) 2016 has also lentils such as Maas, domestic market in identified lentil as one of the Mugi, Mung, Musuro, Nepal. export potential commodities of Nepal. The best area for lentil production includes temperate zones which have warmer win- ters such as India, Australia, and Nepal. 80 Products from Nepal Lentils

Market Situation largest producer of lentils in export destinations include Sin- In global pulses production, 2014. It accounts for nearly 5% gapore, India, UAE, Korea, and lentils occupy 6th position. In- of the world’s total output of the Japan. Nepal also imports len- dia is the largest importer of lentils. Bangladesh is the larg- tils from other countries such as Lentils in the world occupying est buyer of Nepali lentils until Australia, Canada, and Myan- almost 24% of world’s total im- today. It covers a significant mar to fulfil the growing domes- ports. Other major importers of portion of Nepal’s trade with tic demand. lentils include Turkey, United Bangladesh. Demand for Nepali In recent years, data shows Arab Emirates, Bangladesh, lentils is growing in India and that, the export of lentil has been Iran, and Sri Lanka. The major Europe as well due to their high declining. To address this issue exporters of Lentils in the world nutrition level. and to capitalize the untapped include Canada, Australia, Tur- Nepal exported lentils worth market, Nepal government has key, USA, and UAE. Nepal oc- NRs. 1.01 billion in the fiscal recently launched Prime Minis- cupies the 18th position in the list year 2017/18. The major por- ter’s Agriculture modernization of exporters in the world market. tion of exports of Nepali lentils Project to boost lentils output by Nepal became world’s fifth is limited to Bangladesh. Other creating blocks and pocket areas.

Export Trend of Lentils of Nepal Fiscal Year 2013/14 2014/15 2015/16 2016/17 2017/18 Export Value (In billion NRs.) - 1.25 1.29 1.03 1.01

Improved variety of inputs such as seeds, fertilizers, and use of modern technology and skills will be the key to achieving higher yields. Jute Bags and Sacks Products from Nepal 81

Jute Bags and Sacks

Product Highlights Type Jute (Corchorus spp.) Production Area Jhapa, Morang, Sunsari, Siraha, Saptari, Udaypur and Ilam Major Export Destinations India, UAE, and Australia Export Value in F.Y. 2017/18 NRs. 2.10 billion Number of processing industries 11 Jute is an eco-friendly, biodegradable, and annually replenishable cash crop. 82 Products from Nepal Jute Bags and Sacks

Product Feature per boards and baskets. Jute Jute (Corchorus spp.) is an sacks/bags are popular Jute important natural fiber which item which are used for packag- is commonly used for making ing sugar, food grains, fertilizer, ropes, bags, carpets, mattress, seed; vegetables like potato, curtains, and other clothing. It onion, flowers, and fruits. Jute is an eco-friendly, biodegrad- is cultivated in warm and humid able, and annually replenish- climatic regions with tempera- able cash crop. Jute fiber can ture ranging from 240C to 270C. be spun into coarse as well It grows well in clay loamy soil as strong threads. It is also or sandy loamy soil. Around used in paper industry and cot- 20,000 farmers are engaged in tage industries for making pa- Jute farming.

The demand for Jute inside the country is still high. However, domestic market supplies only around 35 percent of the demand. Jute Bags and Sacks Products from Nepal 83

Production Situation industries and 6 of them are The production of this plant is producing Jute items. Current- concentrated in Jhapa, Morang, ly, around 15,000 people are Sunsari, Siraha, Saptari, Uday- engaged in Jute industry. The pur, and Ilam districts of Ne- largest Jute manufacturer in pal. JRO-524 variety of Jute is Nepal, Arihant Multi-Fibres Ltd, widely cultivated due to its wide is capable of processing 25000 adaptability, high yield, and M.T. of Jute per annum. quality fiber. Estimated Jute cultivation area in Nepal as of Market Situation fiscal year 2015/16 is 8011 hec- According to The Daily Records tares and production is 11,633 news, Nepal ranks 5th among MT. Both the area and the pro- the top Jute producing coun- duction have declined over the tries. India is the largest Jute last decades. The demand for producers followed by Bangla- Jute inside the country is still desh, China, and Uzbekistan. high. However, domestic market The Major export destinations supplies only around 35 percent for Nepali Jute products include of the demand; the remaining India, UAE, Australia, Switzer- portion of the demand is fulfilled land, France, Germany, Taiwan, by imported raw from In- Japan etc. Nepal exported Jute dia and Bangladesh. Currently, bags and sacs worth NRs. 2.10 there are 11 manufacturing billion in the fiscal year 2017/18. 84 Products from Nepal Felt Products

Felt Products

Product Highlights Type Felt Products Major Export Destinations USA, Denmark, Germany, UK Export Value in F.Y. 2017/18 NRs. 1.57 Billion

Product Feature Nepal are handmade. So, this Felt refers to a textile material industry is highly labour intensive. which is generally produced by A wide range of felt products are matting, condensing, and press- manufactured and distributed in Nepali ing fibers together. Felt can be Nepal like felt bags, felt coin purs- handicrafts made through different fibers es, felt pencil holders, felt shoes, such as i) natural fibers like wool felt brooches, felt belts, felt muf- are entirely or animal fur ii) Synthetic fibers flers, felt hats, felt jewelries, felt handmade. such as petroleum-based acrylic, balls, felted ball mats, felt cush- acrylonitrile, or wood pulp-based ion covers, and many more. The rayon. Felts produced in Nepal felt products of Nepal are in high are made of purified wool. All of demand in different International the felt products which are manu- markets because the products factured in and exported from are entirely hand-made. Felt Products Products from Nepal 85

Processing of Felt ing on the product we are mak- Felt is non-woven cloth whose ing. It can be made in any color, production generally involves any shape or size as required. matting, condensing and press- Felt may vary in width, length, ing the wool. The raw materials color, or thickness depending for felt products are imported on the intended application of from countries such as India, the product. The material is China, Germany, Denmark, matted which makes it useful and others. These imported for padding and lining as it is raw felt wools are carded and dense and can be very thick. dyed into different colours as As felt is non-woven fabric, required for the products. Gen- edges can be cut without fear of erally, Swiss dye is used during threads becoming loose or the manufacturing. Then the felts fiber unraveling. are compressed by hand with Worldwide, felt is used in washing soap and hot water to different industries and manu- form required shapes. When facturing processes from auto- the felt product is designed, it motive industry and casinos to is then dried under sun. After musical instruments. It is also drying, some additional works increasingly used in arts and such as sewing and decorating crafts and different machineries are done. Now, the felt products in industries. The outer cover of are finished and ready for sale. dolls, musical instruments, and These felt products can both be various industrial instruments very soft or very tough depend- are commonly made from felt. 86 Products from Nepal Felt Products

Felt is also increasingly used in arts and crafts and different machineries in industry.

Market Situation Most of the felt and felt prod- ucts of Nepal are exported to United States of America which accounts for almost 39% of total exports from Ne- pal. Other export destinations for Nepali felt products include Denmark, Germany, and the United Kingdom. Collectively these four destinations occu- py almost 72% of total exports of Nepal. Nepal exported felt products worth NRs. 1.57 bil- lion in Fiscal Year 2017/18. The trend of exports of felt products in recent years is shown in figure below.

Export Value (In billion NRs.)

1.43 1.15 1.27 1.41 1.57

Major Importing countries of felt and felt products include United States of Amer- ica, Mexico, Germany, Czech Republic, China, France, and . The total value of world exports is almost 1,162 Billion USD and Nepal occupies the spot 2013/14 2014/15 2015/16 2016/17 2017/18 of 18th top exporter in the World. Fiscal Year Rosin and Resin Acid Products from Nepal 87

Rosin and Resin Acid

Product Highlights Type Rosin and Resin Acid Manufacturing Site Especially in Nepalgunj, Kailali, Kapil- bastu, and Jhapa districts. Major Export Destinations India, USA, Turkey, Germany, UK, and China Export Value in F.Y. 2017/18 NRs. 1.59 billion The collection Export Volume in F.Y. 2017/18 140 Tonnes of resin is practiced in 35 districts of NEpal. 88 Products from Nepal Rosin and Resin Acid

Product Feature acid. Pine trees contain nu- Resin Collection Resin is a sticky substance merous vertical and radial Resin collection in Nepal started which is collected from live resin ducts which are scat- after the establishment of Laxmi pine trees. The principal tered throughout the entire Rosin Collection Industry. This industry used to export rosin to products of resin are rosin tree. When tappers injure the India without purification. In 1986, trees by cutting them, they and turpentine oil. These are the government established Nepal obtained by the distillation of exude crude resin. The qual- Rosin and Turpentine Industry in resin. While manufacturing ity of resin depends on the to purify rosin. After rosin from resin, turpentine is species of pine. The residue that, many companies joined the manufactured as a by-prod- that remains after distillation industry for the collection and trade of uct. These are mainly used of the crude resin is called resin acid and rosin. In Nepal, Pinus for manufacturing paints, var- rosin. The distilled product is roxburghii, among other species of nishes, soaps, and chemicals. turpentine which is a clear liq- pine trees, is tapped for high yield of Resin contains organic uid and has a pungent odour. resin. This tree is generally found at altitudes ranging from 900m - 1500 acid which is also referred Resin is accumulated more at m. Around 15 different rosin and to as Abietic acid and sylvic the heartwood of older trees. turpentine companies are producing rosin in Nepal. The collection of resin is practiced in 35 districts. For high extraction and environmental conservation, rill method of resin tapping is used in Nepal. There are many resin purifying companies in Nepalgunj, Kailali, Kapilbastu, and Jhapa districts.

General usage of Rosin

Segment Application Benefits Cosmetics Soaps and detergents Reacts with caustic and carbonated alkalis to form soap Food Chewing gum Glazing agent Adhesives Adhesives - Paper Paper sizing agent - Printing Inks Adhesiveness, surface smoothness Coatings Coatings -

Application of Turpentine Segment Application Benefits Cosmetics Disinfectants and cleaning agents Add pine odor Fragrance Use in fragrance diffusers, incense Add fragrance products, candles, and aroma- therapeutic oils Food Flavoring Add flavor Painting industry Cleaning agent Solvent for paints and varnishes Rosin and Resin Acid Products from Nepal 89

The distilled product is turpentine which is a clear liquid and has a pungent odour.

Market Situation Nepal exported rosin and resin acid worth NRs. 1.59 billion in fiscal year 2017/18. The major export destinations of rosin and resin acid include India, USA, Turkey, Germany, UK China, Italy, France, Bangladesh, Pa- kistan, Japan, Canada, UAE, Australia, and others. Its export has been declining for the last five years although the value of export is significantly higher than precious decades. The recent trend is shown in table below.

Export Trend of Rosin and Resin Acid of Nepal Fiscal Year 2013/14 2014/15 2015/16 2016/17 2017/18 Export Value (In billion NRs.) - 1.77 1.70 1.67 1.59

A large number of buyers from The future prospect for rosin and producers are increasingly looking Europe, especially Germany, are resin acid seems to be better for two for new natural substances to looking for new sources to meet their primary reasons. include in the product. need of resin. The usual traditional suppliers are not being able to meet i) Natural ingredients: Both the ii) Ethical products: A growing trend the increased demand of the buyers developed and emerging markets of choosing the products which from existing and new emerging for food and cosmetics are being are ethically sourced while making markets. Hence, Nepal has huge increasingly propelled by the purchase decision is opening a potential and opportunity to explore ‘natural’ trend, and environment huge opportunity for fair trade and this unscathed market and be an friendly products are getting prior- environment-friendly produced alternative source of rosin and resin ity while making purchasing deci- resins. supply. sion. Due to this growing trend, 90 Products from Nepal Bodhichitta and Rudrachya

Bodhichitta and Rudrachya

Product Highlights Type Bodhichitta (Ziziphus buddhensis) Rudraksha(Elaeocarpus sphericus) Production Area Bodhichitta in Kavrepalanchowk and Rudraksha especially in Bhojpur, Sankhasawa, and Khotang Main Uses Seeds are highly important for religious purpose Bodhi beads have Major Export Destinations China, India, Korea, Japan, Singapore, USA, Denmark, Germany & UK recently gained a huge popularity in the International market for its high religious value. Bodhichitta and Rudrachya Products from Nepal 91

Product Feature beads. The price of these beads only after seven years. The fruits Bodhichitta also depends on number of facets appear in June and ripen by Au- Bodhichitta (Ziziphus buddhen- present in the fruit. Farmers of Bo- gust-October. sis) is a plant with high religious dhitchitta claim that a single tree The fruits, seeds, and flesh are value whose seeds are highly rec- can give the produce worth up to used as medicine for producing ognized for meditation. The word NRs. 1 million. This has attracted heat, preparing digestive tablets, “Bodhi” refers to enlightenment more farmers to the cultivation of assuaging whooping cough, and and “Chitta” refers to soul in San- Bodhichitta trees. controlling pressure, heart, and skrit language. Thus, Bodhichitta Reports have shown that Bodhi- mental diseases. The seeds are refers to the soul of enlighten- chitta trees found in Nepal be- also used to make necklaces, ment. As per the legend, histori- long to a distinct species called bracelets, and other jewels. cal Buddha named as Shakya- Ziziphus budhensis which is The word Rudraksha is made muni left behind three plants unique to central Nepal and is up of two parts: “Rudra” which after his meditation in , only found in a small area of refers to Lord and “Aksha” Namo Buddha, and Timal region Kavrepalanchowk district. This which refers to Tear. It is said that of Kavrepalanchowk. Only the species is completely different Rudraksha is made of tear drops plant of Kavrepalanchowk–Bo- from other common species of of Lord Shiva. believe dhichitta - has survived. Another Ziziphus which are widely avail- that rudraksha plays a vital role in legend has presented a different able in neighboring countries like spiritual seeker’s life. As per the story of “Padmasambhava” who Bangladesh, Bhutan, China, In- religious beliefs, these Rudrak- brought buddhism to Tibet in 8th dia, and Pakistan. sha beads offer several benefits century and he left the Bodhichitta if one wears them. They can bal- tree in Kavrepalanchowk when he Rudraksha ance the vital forces of the body stayed there for meditation. Rudrakshya (Elaeocarpus spheri- and can create a blockade from Primary extract of Bodhichitta cus) is another important plant. It different kinds of contaminations. tree is its fruit from which Bo- is a medium-sized tree about 20 Wearing a Rudraksha will protect dhi beads can be extracted and m high which has important reli- the user from different external threaded to make rosaries. These gious value. Its fruit is sour and forces that can be present in new rosaries are used by the follower somewhat acerbic. Rudraksha environments. Due to this benefit, of Buddhism religion to count seeds with one mukh (face) to 38 Hindu Sadhus wear these when mantras. Rosaries of 108 bodhi mukhsare found in nature, but 1 traveling to new locations. The seeds or beads are used as a to 14 faces or mukhis are com- other benefits include protection counting while reciting man- mon. The value of Rudrakhsya from negative energy and en- tras. The fruits usually blooms seeds varies according to faces hanced level of concentration. in the month of April and is har- of the seed. Rudraksha tree is Spiritually, it is believed that vested in the month of August. available at altitude ranging from Rudraksha is the most powerful Different sizes of Bodhi beads 600m to 1500m, especially in and auspicious bead. It has huge can grow in a Bodhichitta tree but Bhojpur, Sankhasawa, and Kho- energy and power that helps the International consumers prefer tang districts of Eastern Nepal. user to control stress, hyperten- smaller beads rather than bigger Rudraksha tree produces fruits sion, and blood pressure. 92 Products from Nepal Bodhichitta and Rudrachya

Market Situation area to secure the produce. A re- Bodhi beads have recently port shows that income from per gained a huge popularity in the plant in Kavrapalanchowk district International market. Nepali Bo- was found to be NRs. 291 thou- dhi beads are particularly popular sand during the time of high de- among Buddhists in China, India, mand. Korea, Japan, and Singapore. Rudraksha beads come with This renewed interest from the different number of clefts or fur- International market is due to His rows on the surface widely re- Holiness the Dalai Lama who ferred as “mukhis”. The number of mentioned Nepali Bodhi seeds these clefts found in any bead can are of the best quality. This state- range from 1 to 14 and depend- ment has resulted in an unprec- ing on this number their use also edented growth in demand for varies significantly. Each Rudrak- Nepali Bodhi beads in the Inter- sha is different from one another national market. The growing de- and user should use it individually mand is still unmet due to limited based on their requirement. The cultivation. To fulfill the increased requirement of mukhi depends on demand, traders go to the harvest the user’s horoscope. Allo Products from Nepal 93

Allo (Himalayan Nettle)

Product Highlights Type Girardinia diversifolia Production Area Throughout Nepal within 1200-3000 meters Major Export Destinations China, Germany, Japan, Canada, France, India, etc. Export Value in F.Y. 2017/18 - Allo plant appears as a perennial robust nettle with stinging hairs. 94 Products from Nepal Allo

Production Situation Allo production is widely done within the entire southern belt of the Himalayas. It is produced in moist, forest areas with shade or semi-shade, along the gorges, streams, tributaries, and on the edges of cultivated land. The Allo plant can be cultivated in all soil types: acidic, basic, and neutral and can be found in light (sandy), medium (loamy), and heavy (clay) soils. Allo is found in forests with Uttis, Guras, Okhar, Malo, Khasru, Kafal, Lauthsalla, Pangra, Sugandhakokila etc. More than 8000 people are involved in collecting these plants and mostly women are engaged in weaving of the Allo thread. It has contributed to uplift the lives of more than 1000 poor women, mostly from excluded communities in 20 districts.

Product Feature stem is used to extract the fiber on. The maximum length of fiber Allo (Girardiniadiversifolia, syn, while young shoot and leaves of that can be extracted from one G. heterophylla), also referred the plant are generally used as Allo plant is 580 mm, which is re- to as “Sisnu” in Nepali, is a tall vegetable and fodder. garded as the longest fiber that and rigid herb, with height rang- These Allo plants are gener- can be extracted from any plant ing from 1.5m to 3m, from which ally found in the mid and high in the plant kingdom. extremely durable fiber can be hilly regions of Nepal. The fiber The best season for Allo har- extracted. This plant grows wild- produced from Allo plants is vesting is between August and ly at altitudes ranging from 1200 considered to be the strongest December. The plant harvested to 3000 meters where there ex- among all the other natural fib- during these months produces ists a moist and fertile soil. Its ers produced in the Himalayas. a white and good quality fiber. leaves are simple and alterna- The bark of Allo plant yields Stingy nature of Allo plant dis- tively arranged during the early a unique fiber that has higher courages local community to stages of its life but, reaches up quality- strength, smoothness, harvest it. These people use to 3-7 lobes in the later stages lightness, and silk-like lustre if thick piece of cloth to protect of development. The length of a it is processed appropriately. their hand instead of gloves. Be- leaf ranges from 10 to 35 cm. It Local people in many remote cause of this stingy nature, peo- yields a kind of fiber that is lo- villages of Nepal have been ex- ple prefer to harvest Allo plant cally known as “Puwa” in the tracting the fiber and utilizing it during winter season when cold western region and “Allo” in the to weave durable jackets and substantially reduces the sting- eastern region. Allo plant ap- coats, porters’ head bands or ing force of Allo. After cutting as a perennial robust net- straps, fishing nets, ropes, bags, the plant, bark is removed and tle with stinging hairs. The bark sacks, mats, blankets, and so peeled for the fiber. Allo Products from Nepal 95

Market Situation can be made to products being Value Chain Mapping Since many centuries, people sold within Nepal itself. Differ- Generally, Allo processing have been extracting the fibers ent organizations are conduct- involves the following steps: from Allo plants and spinning ing researches on technology • Harvesting: Allo plant is harvested by farmers and them to weave durable clothes. enhancement of Allo processing. then outer dead bark is Almost 50% of total productions This will provide a certain useful removed and inner bark is of Allo in Nepal is consumed addition that can be exploited to peeled. domestically and only the re- enhance the value of the product • Drying: The peeled bark maining 50% is exported to third being exported. Allo market can is then dried for a day and world countries. Allo weaved be further enhanced by exploit- then is bundled and stored clothes have high demand in ing additional uses of Allo by the in a well-ventilated room. the international market and to people. One such example can • Cooking with ashes or further strengthen this demand, be the use of Allo in the carpet in- caustic soda: Inner barks Allo weaved clothes are the dustry which has a huge market are cooked in a drum containing water with ash prime souvenir product of Nepal. potential, and another example of any kind of wood or Allo processing still has a can be the manufacturing of high- caustic soda for certain huge possibility of improvements quality products out of Allo like hours. through which high value addition finer threads. • Beating and washing: Cooked fiber is then washed in running water by beating it frequently with wooden hammer. • Bleaching and drying: The fiber extracted is then mixed with rice husk or flour to make the fiber soft, white and shiny. • Washing and drying: After bleaching, chaff is removed by washing it. The fiber is beaten again if required, which is then dried in the sun. • Spinning: Now, fiber is ready for spinning into yarn, which is then used to weave clothes.

Allo weaved clothes are the prime souvenir product of Nepal. 96 Products from Nepal Himalayan Dog Chew (Chhurpi)

Himalayan Dog Chew (Chhurpi)

Dog chew is a product specially chews available in the market. In contrast, hard variants of produced in the Himalayan region First one is of a soft variety which dog chews are kept in mouth of Nepal. It was initially made us- is usually consumed as a side to moisten it to let it be soft and ing an ancient recipe to produce dish with rice and second one is chewing it as a gum. Due to its a hard snack chewed of a hard variety which is usually rich protein content and tangi- by the people of Himalayas. It is chewed like a betel nut. The pri- ness, it is an excellent treat for prepared from . Its main mary uses of soft variety of dog dogs. It is highly demanded in ingredient is yak milk; are chew includes cooking with green global market as dog chew for only found in the mountains at vegetables as savory dishes, consumption of dogs. Lots of pre- more than 15,000 feet. Locally, used as a filling in a special Nepali cious plants with high medicinal it is known as chhurpi and it has dish called Mo:Mo, grinding with value are available in abundance earned a special demand in the tomatoes and chilies for pickles in the high mountainous region. western countries. It doesn’t con- (chutney), and as a soup. They Yaks feed these plants which tain any added preservatives, are rich in protein so, they are are also herbs carrying abundant colors or chemicals and In addi- used as substitute for vegetables medicinal properties. The human tion, they are also gluten-free. by people living in mountainous or animals who consume these There are two variants of dog region of Nepal. herbs also gets benefits. Products from Nepal 97 98 Products from Nepal

List of Contacts for the Products

Ministry of Industry, Commerce & P.O. Box 269, Kathmandu NEPAL Ginger Supplies Telephone: +977-1-4262061 / Nepal Ginger Producers and Singhadurbar, Kathmandu, Nepal 4262218 / 4266889 Traders Association Phone: +977-1-4211446, 4211608, Fax: + 977-1-4261022 / 4262007 Teku, Kathmandu, Nepal 4211298 E-mail: [email protected] Phone: +977 9851033784, Fax: +977-1-4211167 Website: www.fncci.org +977 9813542100 Email: [email protected] Email: [email protected] Website: www.moics.gov.np Confederation Of Nepali [email protected] Industries Website: www.nepalginger.org.np Office of the Investment Board Trade Tower, 5th Floor ICC Complex, New Baneshwor Thapathali, Kathmandu Tea Kathmandu, Nepal Phone: +977-1-5111122, 5111123 Himalayan Orthodox Tea Phoe:977-1-4475277,977-1- Fax:+977-1-5111125 Producers Association-Nepal 4475278 Post Box: 21056 Po Box: 21884, Bakhundole, Lalitpur Fax: 977-1-4475281 Email: [email protected] Phone: +977 1-5521942 Email: [email protected] Website: www.cnind.org Email: [email protected] Website: www.ibn.gov.np Nepal Chamber of Commerce Central Tea Cooperative Department Industry Kantipath , Kathmandu Nepal Federation Ltd. (CTCF) Nepal Tripureshor, Kathmandu, Nepal Telephone : 01-4230947 Illam 2 Mechi, Nepal Phone: +977-1-4261203 Fax no : 4-229998 Phone: +977 -027-521714 Email: [email protected] Email: [email protected] Email: [email protected] Website: www.nepalchamber.org Trade and Export Promotion Himalayan Tea Producers Centre Federation of Women Cooperative Ltd. Pulchowk, Lalitpur Entrepreneurs’ Association of Kathmandu, Nepal P.O. Box 825, Kathmandu Nepal Phone: +977 -1-5521942 Tel: 977-1-5525898/5532642 Devkota Sadak, Mid Baneshwor, Email: [email protected] Fax: 977-1-5525464 Kathmandu, Nepal Email: [email protected] Ph/Fax: +977-01-4486194, +977-01- Medicinal and Aromatic Website: www.tepc.gov.np 4486775, Plants (MAPs) Hotline: +977-01-4495512 Nepal Herbs and Herbal Product Email: [email protected] Association of Nepal National Tea and Coffee Teku, Kathmandu, Nepal Development Board Large Cardamom Phone: +977-1-4100207, +977- New Baneshwor, Kathmandu, Nepal Large Cardamom Entrepreneurs 9851087981 P.O. Box 9683 Association of Nepal Email : [email protected] Tel: 977-1-4495792, 4499786 Anarmani, Birtamod, Jhapa [email protected] Fax: 977-1-4497941 Phone: +977-23-541479 Website: http://www.nehhpa.org.np Email: [email protected] Email: [email protected] Jadibuti Association of Nepal Federation of Nepali Chambers of Head office: Old D.S. P Road, Commerce and Industry (FNCCI) Nepalgunj-6, Banke Pachali Shahid Shukra FNCCI Milan Phone: +977-81-524884, Fax: +977- Marg, Teku 81-523239 Email: [email protected] Website: www.jadibutinepal.com 5th floor Hotel Norbulingka, Ga Hiti Marg, All Fabrics, Textile, Yarn New Baneshwor, Kathmandu, Nepal Thamel, Kathmandu, Nepal and Rope Phone: +977-1- Phone: +977-1-4410630/4423515 Nepal Textile Industries 4104405/9841465491 Ext.17 Association Email: [email protected] Website: www.nrmassoc.org Jwagal, Kupondole, Lalitpur, Nepal Website: www.coffeenepal.org.np Phone: +977-1-5529290 Silver Jewelry Vegetable and Vegetable Federation of Nepal Gold Silver Export Council of Nepal seeds Gem and Jewelry Association Bhagabatisthan, Thamel, Nepal Horticulture Society Tripureshwor, Kathmandu, Nepal | Kathmandu, Nepal Khumaltar, Lalitpur G.P.O Box: 11581 Phone: +977 1 4441337 Phone: 9851003113 Phone: +977-1-4253250 Email: [email protected] Email: Nepalihorticulture@gmail. Fax: +977-1-4253251 Website: www.nepalexport.org.np com Email: [email protected]

Leather Fruit and Juices Nepal Gem and Jewellery Nepal Leather Industries National Centre for Fruit Association Association Development 4th Floor, Kesha Plaza, New Road, GPO Box: 9944, Anamnagar, Kritipur, Kathmandu, Nepal Kathmandu Kathmandu Phone: +977-14331619 Phone: +977-1-4220210 Phone: +977-1-4265248, Email: [email protected] Email: [email protected] Fax: +9774228978 Website: www.fdd.gov.np Website: www.negja.org.np Email: [email protected] Honey Handicraft Footwear Federation of Beekeeping Nepal Handicraft Association of Nepal Footwear Manufacturer’s Bharatpur-9, Chitwan Thapathali, Kathmandu, Nepal Association of Nepal Phone: +977-1-56-531999 Phone: +977-1-4244231, UWTC, 4th Floor, Kathmandu Email: [email protected] +977-1-4245467 P.O.Box 19732 Website: www.fnbk.org.np Fax: +977-1-4222940 Phone: 977-1-4117075 E-mail: [email protected] Email: [email protected] Handmade Paper Website: www.nepalhandicraft.com.np Website: http://www.fman.org.np Nepal Handmade Paper Association (HANDPASS) Felt Products Chyangra Pashmina Ram Marga Ward No 11, Association for Craft Producers Nepal Pashmina Industries Babarmahal, Kathmandu Ravi Bhawan, Kathmandu, Nepal Association Phone: 977-1-4783086 Phone: +977-1-4275108, Kanti Path, Kathmandu, P.O. Box Email: [email protected] +977-14270721 No. 44600 Website: www.handpass.org Email: [email protected] Phone: +977-1-4254713, Website: http://acp.org.np Fax: 00977-1-4257859 Readymade Garments Email: [email protected] Garment Association of Nepal Flowers Website: www.chyangrapashmina.com (GAN) Floriculture Association Nepal Sankhamul Road, New Baneshwor, Jwagal-11, Lalitpur, Nepal Hand Knotted Carpet Kathmandu, Nepal Phone: 977-01-5261089, Nepal Carpet Manufacturer and P.O. Box: 21332 Fax: 977-1-5261089 Exporter Association Tel: +977-1-4780691/4780773, Fax: Email: [email protected] P.O. Box No. 20747, Boudha Tusal , +977-1-14780173 Website: www.fanepal.org.np Kathmandu, Nepal Email: [email protected], www.nepalfloraexpo.com.np Phone No : (977) 1-4486849 [email protected] Email : [email protected] Website: www.ganasso.org Jute and Jute Bags Website: www.nepalcarpet.org Nepal Jute Mills Association Semi-precious Stone Biratnagar, GPO Box: 139, Nepal Coffee Nepal Rocks & Mineral Phone: +977-526852, Nepal Coffee Producers Association +977—528657 Association Email: [email protected] Newbanshwor Plaza D-Block Productsfrom

NeA Handbook of Majorp Export Potentialsal of Nepal Products From Ne p al A Handbook of Major Export Potentials Nepal

Government of Nepal Ministry of Industry, Commerce and Supplies Singhadurbar, Kathmandu, Nepal Government of Nepal Ministry of Industry, Commerce and Supplies Singhadurbar, Kathmandu, Nepal