As domestic traders have been relying on imported raw materials, the processing plant-the first in the country-is expected to boost pashmina exports. Pashmina is one of Nepal’s major exportable items. However, traders have been facing export problems due to the low quality of their products.

During its heyday, Nepal-made pashmina used to attract huge international orders. In 1999, Nepal exported pashmina worth Rs 5 billion. However, exports plunged to a record low of Rs 1.04 billion in 2004 as a result of poor quality. Byabasayik Krishi Sahakari will process the wool collected from mountain goats known as chyangra and produce pashmina.

Inaugurating the plant, Lal Mani Joshi, secretary at the Ministry of Cooperatives and Poverty Alleviation, said that use of Nepali raw materials would help generate employment in the mountain regions. “The government has accorded priority to the production of own raw materials.”

Established with an investment of Rs 2 million, the plant has a capacity of producing 600-700 kg of quality wool per hour.

“Initially, we have planned to produce 40-50 kg daily,” said Jyoti Prasad Adhikari, chairman of Byabasayik Krishi Sahakari. “We will soon be installing a spinning plant to produce pashmina fibre.”

Adhikari said that they had arranged with the local people of Mustang and other mountain regions for wool collection. “We are planning to provide them the necessary equipment to carry out the preliminary processing in their locality,” he added.

A study of the International Trade Centre, a subsidiary of the World Trade Organization, shows that there are around 300,000 chyangras being reared in the high hill regions of Mustang, Humla, Mugu and Dolpa districts. Around 55,000 chyangras are being raised in Mustang district alone. An estimated 8 tonnes of pashmina wool can be produced out of them annually.

Nepal has been importing almost all the raw materials needed to make pashmina products from China. Traders have complained that they have been compelled to import substandard raw materials at higher prices due to lack of domestic products.

Bishnu Prasad Dhakal, trader and secretary of the cooperative, said they had been paying Rs 12,000-Rs 40,000 per kg of pashmina yarn based on its quality.

“The availability of processed raw materials could help maintain the quality of Nepali products,” said Amar Bahadur Shah, project director of High Mountain Agribusiness and Livelihood Improvement (Himali), a programme being operated by the government with the support of the Asian Development Bank.

The Himali programme has focused on improving the quality and productivity of 41 items in 10 high hill districts. According to Shah, they have been supporting chyangra and yak farming, fruit production, rainbow trout farming, milk processing and juice and herbs production in these districts. Sara Kruger Falk, head of Danida Business Partnerships and CSR, said Danida was keen on supporting the supply chain programme which could create a large number of employment opportunities.

According to her, Danida has been giving priority to promoting four areas, namely tourism, handicraft, health and agriculture. “Provided there is good collaboration and partnership, the programme could help expand value-added businesses like production of pashmina wool,” Falk said.