Under a project entitled “Pashmina Enhancement and Trade Support (PETS)”, the ITC will be spending over US$ 1.8 million over the next three years. The government is putting in US$ 0.2 million out of the project’s total cost of US$ 2.06 million.

The project is expected to enhance the competitiveness of Nepali pashmina by improving production quality besides promoting the Chyangra Pashmina brand in the international arena to expand the market potential.

According to the Nepal Pashmina Industries Association (NPIA), the programme is all set to support the supply chain of the pashmina. These include the production of pashmina yarn through goat farming in the high hill areas, capacity building of the stakeholders, improving designs and promoting the brand in the international market.

The ITC is supporting the sector in accordance with the Nepal Trade Integration Strategy 2010 which is being implemented by the government with support from the Enhanced Integrated Framework of the WTO.  

According to the Trade and Export Promotion Centre, Nepal exported pashmina worth Rs 2.17 billion mainly to Germany, the US, France and the UK last year.

Despite being one of the major export items, poor quality resulting from the use of substandard raw materials and lack of promotion have been impeding the growth of the pashmina business in the international market. The proposed project has targeted helping strengthen the institutional capacity of farmers at the local level.  Similarly, the project will focus on improving the designs of the products.

“Presently, the sector relies mainly on conventional designs, and support for developing new designs could boost the export market,” said NPIA President Pushpa Man Shrestha.