CHAPTER - I

INTRODUCTION

1.1 Introduction of Pashmina

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

Pashmina is a every soft and special wool fibbers of the Himalayan mountain goats.
Pashmina can be made up of the inner part a hair from even other mountain animals also,
But the softest Pashmina fiber can be made from the wool of the neck of the mountain
goats. Originally the gats in habituated in remote area of Himalayas of Nepal. Mongolia,
and Tibet over the altitude of 12000 ft. Pashmina wool can be collected from Mustang,
Solpa, Humla Jumla and other part of Nepal China boarder Sides and in Tibet also. It is
7-8 times thinner that the human hair. Pashmina is the finest softest and lightest wool
fibber. Various types of Pashmina product which is a considered has jewelry had been in

use even in the families of emperors like Mangol. Gradually the user Pashmina product
has been increasing rapidly.

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

1.2 Historical background of Nepali Pashmina:

Handicraft has been valuable pat of Nepali heritage. They express the great culture of
Himalayan Kingdom. Now Nepal Pashmina plays an important role in handicraft export.
Until a century ago Pashmina certainly was not top exportable handicraft. But 10/11
years ago Nepali Pashmina become a popular in Indian. European, American and other
60 countries markets. Wool and silk are only two raw material used in Pashmina are
imported from China Many years ago Nepal also imports few quantity of Pashmina from
Tibet for domestic use.

Before the industrial revolution all handcrafts products are hard made often in home. In
Nepal, Pashmina is not new business. In the early time Pashmina has bee using for
limited option for example shawl sweaters. People at that time produce Pashmina for

their own use. After the industrial revolution, science and technology had developed.
New technology and the new machinery, the Pashmina were produced in high level of
quantity with in a low cost of production. But the finishing of Machinery used Pashmina
is low quality. Then the hand made Pashmina that's why international market demands
Nepali hard made Pashmina. Thus, the export of Nepali Pashmina has been increased
rapidly with in a short period but the terrorist attack 11 September 2001.

Most of the industries as well as Pashmina industries are fully affected from the
international terrorist attack 11st September 2001, in WTC is New York in it is also
affected by conflict political unstability. Pashmina in dry try become slowly increase in
export 116 Pashmina industries have been registered in Nepal Pashmina industry
Association (APIA). Out of Approximately 682 Pashmina industries. So many small
Pashmina industries are producing Nepal hand made Pashmina. Most of Pashmina
industry establishes in Kathmandu valley but some industries located out of valley too.
1.3 Importance of Nepalese Pashmina:
Before 15-16 years ago only few quantity of Pashmina were exported. By using
machinery and new technology, a large scale of production and export of Nepali
Pashmina were started. Now days many people are involved in production and export
Nepalese Pashmina. The Pashmina goods from Nepal. Now it is a number one goods to
be export in third countries large scale of production and export of Pashmina has been a
very recent phenomenon until last four years ago back Pashmina certainly was not one of
the tap exportable goods. During the short period export of Pashmina has been increased

dramatically, because the Queen of U.K. has used Nepali Pashmina in the special public
accession. It is an important good to earn foreign currency. Nepalese export wide range of
countries. Nepalese Pashmina joined majestic growth rate more over Pashmina topped all
their handcraft items. It helps to earn foreign currency and give more employment
opportunity. It con help poverty elimination for poor people, who are living in the remote
village.

The main reason, Pashmina guised a majestic growth rate the extensive coverage of the
Pashmina in some international fashion magazines. An article in vogue which read card
board believed to have raised the name of Pashmina to new height increasing us of
Pashmina by leading, European actress and models was another major boost to its export.
Today development of communication, Email, Internet, web-site is developed. An interest
is the best and cheapest way to extend the business and to advertise about Pashmina.
Customer about product and service of Nepalese Pashmina with out visiting the product
and service provider. Thus Nepalese Pashmina important in an international market with
in short period.

1.4 Problems of Nepalese Pashmina Industry:

During a short period, Nepali Pashmina gained a majestic growth rate and got a top first
position in exportable article from Nepal. Now it has some problem to expend the
business of it. Exporters of Nepali Pashmina are facing these problems which are listed.

a) Some of the trade is said to be selling machine made Pashmina as handcraft.

International market demand handmade Pashmina. Buyers in the international markets
looks strong liking to the Nepalese Pashmina because of handmade that is why bigger
order followed but some of the traders are said to be selling machine made Pashmina as
handmade crafted. Sooner or later such business surplus are going to adversely affected
the importer, just as mixing of fluff during carpet wearing few years ago affected or pets
exports.
b) Forefeet Changed in the government policies
In Nepal political un stability is large problem for export business. The government has
charged tax rate of export and import goods as the government change. The income tax
act 2005, it change 0.5% of exported goods and 20.25%. Tax change in imported goods.
Which is high rate of decline production of Pashmina the production of Pashmina decries
by political unstability, maoiest problem and government policy. We can say other small
technical proglems are main causes effected to Nepali Pashmina.
c. Reducing in the quality of Nepalese Pashmina
Generally to produce good quality Pashmina 70% Pashmina and 30% risk should was but
some small industries beside using above quality they using 40% Pashmina and 60% silk.
This may be bed effect for Nepalese pashmina in International market.
d. Raw materials used in pashmina are imported problem
Wool and silk the only two raw materials used in pashmina are imported form china.
China requires payment in & dollars, but more then 70% of aggregate production being

exported to India. Indian importer pay in Indian currency thus to earn dollar and to
improve the financial position of the country it don't play position role.
e. Nepali workers are devoid of potential source of income by Indian work force.
Market

of pashmina industries are using Indian work fore for preparing Nepalese

pashmina. Indian work force is efficient and technically skilled. Thus lack of skilled
Nepali workers is devoid of potential sources of income.

f. More them 90% of new manufactures haring no access of foreign market

Large number of in experienced new Nepalese entrepreneurs who entered in the industry
in a huge capital but with out any ideas about pashmina as for as having no access to the
foreign market. Thus pashmina markets may result in the bankruptcy of many Nepali
manufactures.

1.5 Objectives of Study:

Handcraft goods must be exported good from Nepal pashmina is main product. It has so
many objectives. The main objectives of this field work study are as follows...
a. To find out present situation of the export trend of these goods to the neighbor
countries and third countries.
b. To identify the problems that are faced by the pashmina business house and give
suggestions.
c. To find out the reason of being to export goods of Nepali pashmina within a short
periods and why decrease then after regularly.

d. To find out the economic impact which impose by this business in our country.
e. To find out the important role that the pashmina plays in Nepalese handcraft good
export business.
1.6 Method of data collection
Mainly data collection is two ways they are follows.
1. Primary data:
The primary steps of the reporting is to collect necessary information and data concerning
to the study. The data relating to study is abstained from NPIA, HAN, TAN, KPU, KPA
and Euro pashmina (p) Ltd.
2. Secondary data:
All the data used in this reporting is secondary data, which is concern from news and
bulletin of HAN Website and bulletin of NPIA and various published information in daily
magazines.
1.6.3 Tolls or Formulated Used
a. Percentage increased/decreasePresent year-Previous year/Previous year
b. Portion Covered in percentage-Portion Value / Total value *100%

CHAPTER 2
ANALYSIS AND PRESENTATION OF DATA

2.1 Total export and export trend of Nepali Pashmina:

Traditionally carpets and garments have been the good export goods of Nepal. They were
among the top the see foreign currency earners. The third one in being tourism, But now
Pashmina is taking the top position of exportable goods from Nepal. It is also a highest
export goods handcraft Industry it plays a great important role to earn foreign currency
and employment opportunity.
Before 15/18 years ago, Nepalese Pashmina had been produced for local market and for
these tourists who were visited in Nepal. Among them a few quantity were exported.
Since 9/10 years ago. Nepali Pashmina gained popularity in Europe, American, Asian and
other countries. After that Nepalese people this business professionally and many people
involved in Pashmina business.
Large scale of production and exports of Nepali Pashmina has been very recent
phenomenon in Nepal. That is why the export of Pashmina decreasing last 3 years.
The following table No. 1. Shows the export trend of Pashmina during fiscal years.

Table 1
Export trend Pashmina During Fiscal Year
Year
Total

2058/59
export 1,41,277, 312

2059/60
2060/61
989,897,859.8 661,373,832

2061/62
2062/63
700,701,035 619,391,984

of pashmina
Source: Nepal Pashmina Industries Association
Above that No. 1 show the total export of pashmina during the fiscal years 2058/59 to
2062/63 which indicated the export of pashmina is slowly decreasing but 61/62 had
increasing and 62/63 also decreased export of pashmina because of so many matter.
Figure-1

In the Figure No. 1 Export trend of pashmina shows that pashmina has exported in the
foreign country. The trend line show these things. In the fiscal year 2059/60 so many
decrease in export of Nepalese pashmina and 2061/62 export is increased last year also
decrease. Nepalese pashmina industry export coming year its increase for export.

2.2. Country wise export of pashmina goods from Nepal in different fiscal year in
Rs.
Table-2
S.N.
Country
1
Austria
2
Belgium
3
Canada
4
Denmark
5
France
6
Germany
7
Honkong
8
India
9
Italy
10
Japan
11 Netherlands
12
Portugal
13
Singapore
14
Spain
15
Sweden
16
Switzerland
17
Taiwan
18
Thailand
19
U.A.E.
20
U.K.
21
U.S.A.
Source: NPIA

2058/59
2,58,3700
3,757,128
69,683,900
11,902,177
65846421
59226664
10,613,092
377,377,182
77841103
184545837
1,971,809
64837
28326543
2988360
2549146
320,024,090
2,717,652
48,641,728
22,982,104
156,956,801
201,750,050

2059/60
3,333,842
2,480,317
57,817,101
9,753,108
35,216,764
51,978,508
1,224,771
247,775,667
81,128,137
110,601,693
11,826,374
684,713
4654472
3667900
2191334
24,928,816
2,609,714
28,042,445
1607082
162,149,538
115,913,230

2060/61
1914244
1,470,506
99,839,496
14,794413
24,955618
65,489,790
2,239,449
5,686,193
100,557,563
43,056,423
5,296,858
838063
7425430
2093875
3246478
25,518141
1,700,662
16,615,615
6746,820
82,283,358
118,943,395

2061/62
4335774
5,254537
85,816,394
8,601,818
3,578,7132
112,557,312
8,726,011
1,283,617
63,092,661
17,371,569
7,382,747
1,476,805
6,050,602
4543591
3,977,680
30,060,421
3,295,870
7,739,598
37,006,998
96,927,972
137,520,316

2062/63
1,010,732
602,279
58,545,897
10,37351
26,129,736
81,619,558
2934853
469,982
50,679,861
25,069,120
1,517,354
494492
4232077
2,652003
4335859
21,647,122
2,250299
540433
50,396,749
75071288
178,790645

In the table-2 which is provide me that India in 2058/59, 2059/60 is the larger importer of
Nepalese pashmina but india is less importer of Nepalese pashmina. It's negative impact
in Nepalese pashmina Industry, USA, Germany, UK, Itily, UAE France and

other

country are regular Importer pashmina from Nepal. In the fiscal year 2062/63 USA, is
178,790,054 Germany 81,619,558 UK 75,071,288 Canada 58545897 Itily 50,679, 861

UAE 50,396,749 and other country life Japan, France, Switzerland, Denmark are regular
customer of Nepalese pashmina.

We can also explain it from the figure

Figure-2
Export fiscal year 2062/63

In above figure-2 It shows that USA (United States of America) is the larger import and
India is lowest importer, but they are regular importer.

Importer country of Nepalese pashmina. It show UK, UAE, Germany, Canada, France,
Japan, and Switzerland are the large and India, Belgium, Portugal, Thailand are lowest
importer countries.

2.3 Export of pashmina of this current Fiscal year

Monthly basis export of pashmina goods (Fiscal year 2062/63)
Table-3
S.N.
1
2
3
4

Month
Shrawan
Bhadra
Ashwin
Kartik

Amount R.s
54,745,485
57183323
59623629
64,236,057

Percent
8.83
9.23
9.62
10.37

Change Percent
4.45
4.26
7.73

5
6
7
8
9
10
11
12

Mangsir
Poush
Magh
Falgun
Chaitra
Baisakh
Jestha
Asadh

82,053,654
48,585,280
33,618,797
46,546,662
26,833,417
31,111,375
49,965,472
64,888,828

13.24
7.84
5.43
7.52
4.33
5.03
8.06
10.50

27.73
-40.78
-30.80
38.33
-42.35
15.94
60.60
29.86

Total
619,391,984 100.00%
Source: Handicraft Association of Nepal.

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

represents information about the export trend of pashmina in monthly wise of current
fiscal year 2062/63.

Table No. 3 it has shown report trend in the compare of before month 4.45% increase in
Bhadra then Shrawan. Mangsir is large import month and Chaitra is lower import month.
The month Mangsir where large export 82,053,654. Then after Jestha 64,888,828 and
lower import month Chaitra which is 26,833,417.
In Fiscal year 2062/63.
Figure-3
Export of pashmina on the Month

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

2.4

The export of pashmina is compare with other handicraft goods.

In the table below show the goods of the handicraft which are exported in fiscal year
2060/61/62/63.
Table 4
Exported handicraft goods in three fiscal
S.N
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

Product
Pashmina Products
Wollen goods
Silk Products
Cotton Products
Hemp Goods
Allo Goods
Dhaka Products
Silver Jewelry
Metal Craft
Handmade Paper
Wood Craft
Leather Goods
Incense
Paudha (Thanka)
Bone & Horn Products
Ceramics Products
Beads Items
Bamboo Products
Store Craft
Plastic Items
Miscellaneous
Total
% of sales on the year

2060/61
661,373,832
432,203,471
132,354,320
113,720,701
45,256,263
4,995,352
367,498,246
293,065,733
301,725,045
69,881,610
23,610,502
18,308,356
15,002,557
10,691,236
14,864,420
6,025,616
2,487,826
3,458,700
7,453,119
47,863,520
2,571,841,423
30.98%

2061/62
700,701,035
555,182,797
129,084,221
110,769,595
62,082,023
3,370,222
377,448,266
373,010,297
263,764,274
80,824,001
25,811,618
20,591,579
21,009,108
14,976,693
18,716,832
7,967,173
2,918,536
3,372,941
8,530,634
69,344,94
2,849,476,340
34.32%

2062/63
619,391,984
657,726,442
126,521,848
92,564,129
51,614,459
4,764,624
4,661,928
360,079,696
437,790,118
269,630,462
66,806,760
20,761,121
17,726,273
15,411,112
23,824,695
15,081,348
9,519,405
2,198,939
3,018,383
8,921,345
72,629,778
2880,644,848
34.70%

Total
1981466851
1,645,142,700
387,809,510
317,054,425
158952741
4,764,624
13027502
1,105,026,200
1,103,866,148
8351197871
21,752,371
70183241
56626208
51,422,777
49,492,624
48,662,600
23,513194
7,605,301
9,850,024
24,905,098
189837792
8301962611
100%

In above the it shows that among other handcraft goods, the pashmina is the highest
exported goods from Nepal in those years. In the three fiscal years Rs 1,481,466,851
pashmina exported and then woolen goods has exported secondly. Pashmina is main

earning sources of the country. Handicraft goods is more important in Nepalese economy
23.87% of exported good in handcraft good. Which is life pashmina woolen goods, Silver
Jewelry, Metal Craft, Handmade paper, Silk, Cotton wood craft, leather goods. Incense,
Thanka, and other textile and non textile are main exported hand made goods.
Figure-4
Ratio of sales on three years

In this figure 4 it show the total export of handicraft goods. Among the three years
2062/2063 is the better then the other fiscal years in year 62/63 export of handicraft is
higher then other respectively.

In this figure 34.70 covered due fiscal year 062/63 and other 34.32% in 61/62, 30.98% in
060/61. Handicraft Goods is slowly increase in export.

Table-5
Product
Pashmina

F/160/61
661373832

F4 61/62
700,701,035

F4 2062/63
619,391,984

Other
Total
% of pashmina
% of other Goods

1910467609
2571841423
25.72%
74.28%

2148775305
2,849,476,340
24.59%
75.43%

2,261,252,964
2,880,644,848
21.50%
78.50%

Figure-5
Export of pashmina and other handicraft

2.5 Diminution Condition:

Fiscal year 2060/61 export pashmina was good. Fiscal year 2062/63 was decreasing by
very small ration with fiscal year 2061/62. The ease of foreign currency earned and
various numbers of people get best employment and most of people in engage in
pashmina business and other handicraft product. In 5/6 years ago pashmina is excellence
export then handicraft. But now other handicraft product slowly increase and pashmina is
slowly decrease. But regular export countries USA, Germany UK, Canada. Italy UAE,
France, Japan, Switzerland Import regular customer. Then Import is slowly increase but
India is also regular customer but India Import now few of pashmina.

Table-6
Position of regular exports country
S.N. Country
1
U.S.A.
2
Germany
3
U.K.
4
Canada
5
Italy
6
U.A.E.
7
France
8
Japan
9
Switzerland
10
Denmark
11
Spain
12
Taiwan
13
Thailand
14
Austria
15
Australia
16
Sweden
17
Hong kong
18
India
19
Portugal
Source: NPIA

2061/62
137520316
112,557,312
96,924,972
85816394
63092661
37006998
35787132
17,371,569
30,060,421
8,601,818
4,542,591
3,295,870
7,739,598
4,335,774
7010459
3977680
8,726,011
1,283,617
1476805

62/63
178,790,054
81,619,558
75,071288
58,545,897
50679861
50,369,749
26,129,736
25,069,120
21,677,122
10,373,531
2,652,003
2,250,299
540,433
1,010,732
2,751,245
4,335,859
2,934,853
469,982
494,492

Change%
30%
-27.48%
-22.55%
-31.77%
19.67%
36.11%
-26.98%
44.31%
-27.89%
20.56%
-41.62%
-31.72%
-93.02%
-76.67%
-60.75%
9.01%
-66.36%
-63.38%
-66.51%

Regular export countries, UAS export large number of pashmina and Portugal export few
small number of pashmina, According table 6 it shows that the country of their export
position. It is noted that USA export in fiscal year 2061/62 is 137520316 which is
increase by 30% of previous year secondly export Germany 81,619,558 which is decrease
by 27.48% of last year export, Japan, Denmark Sweden had increase in export but other
country export is decrease.

CHAPTER-III
SUMMARY, CONCLUSION AND RECOMMENDATION

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

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

3.2 Conclusion:
Nepal is one of the least developed countries in the world. Most of the people are under
the line of poverty so pashmina business can play the important role to improve the
economic condition on the country so the effort of private sector to improve the pashmina
business is good condition but it has not enough for developing pashmina business, for

that better stop also should be processed by Government sector. Government should give
the facilities to the pashmina business holder. It will help to increase the per capital
income and it also eradicate the problem of poverty in Nepal.

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

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

From this fieldwork report we can get lots of information related to pashmina business in
Nepal such as importance of pashmina business in Nepal, It's difficulties and its role in
Nepalese economy. It also shows the export of pashmina t international market from
fiscal year 2058/59 to 2062/63.

According to that data the export of pashmina is slowley decrease in 058/59 to 060/61
and slowly increase 060/61 to 061/62 and again decrease 062/63 Now pashmina has
reserved the 21.5% of the total handicraft goods exported.

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

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

3.3 Recommendation:
Better steps should be processed by the Government sector.
To be continued with the proper rules and policy.
Government should be flexible for developing the pashmina business.
Various kind of tax polity should be conducted with discount.
Effort and Impulse should be give to people participated in pashmina business.
Expansion of proper market and export promotion .
Cooperation between government and business molder.
Business should be expanding out of valley.
High quality goods should be produced so that it could take the good market.
Should be given priority in keeping chyangra so that raw material needed for
pashmina could be provide easily
All pashmina business holders should be put under the equal rule and policy.
Special logo should be attached on hand made product for leveling.
Program should be conducted for the quality controlling and stability.
Develop of the skilled manpower product position.
Government should conduct in program immediately to increase the export of
pashmina.

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Prem R. Panta "Field work Assignment and Report writing."
Ritika silwal "Field work Assignment and report writng."
Various web sites Relating to the Pashmina business.

GLOSSARY

NPIA

Nepal Pashmina Industries Association

HAN

Handicraft Association of Nepal.

KPU

Krishna Pashmina Udhyog

KPA

Krishna Pashmina Arts

B.S.

Bikram Sambat