Stakeholders validate pashmina sector export strategy to strengthen backward integration in Nepal

ByLaxman Datt Pant

Stakeholders validate pashmina sector export strategy to strengthen backward integration in Nepal

The entire pashmina stakeholder value chain from fibre production to manufacturing and export has validated the pashmina sector export strategy (PSES) to strengthen backward integration in Nepal.

Validated under the European Union (EU)-Nepal Trade and Investment Programme (TIP) during a workshop organized on March 25 and 26 in Pokhara, the capital city of Gandaki Province of Nepal, the PSES aims to increase the quantity and improve the quality of fibre which will potentially lead to higher prices in order to boost the pashmina business sector in Nepal.

TIP is a four-year programme (2020-2023) funded by the EU and implemented by the International Trade Centre (ITC). It supports the Government of Nepal to achieve sustainable and inclusive economic growth and poverty reduction by increasing trade and participation in regional and global value-chains.

During the workshop, the TIP facilitated the sharing of the views of more than 40 stakeholders representing federal and provincial governments of Nepal, public institutions, business associations, and development partners to validate the plan of action of the PSES that focuses on backward linkages and fibre production. Participants of the workshop discussed the pilot support activities in Mustang district that were planned under the TIP to create business synergies between manufacturers and the goat farmers who harvest pashmina fibre.

These farmers, working in the remote parts of the upper Himalayas, are now expected to be able to look forward to increased support for their endeavors.

Describing the EU project as timely and recognizing the importance of taking proactive measures to stimulate the sector as it is one of the priority sectors for export development identified by the GoN in the Nepal Trade Integration Strategy (NTIS), Dinesh Bhattarai, Secretary at the Ministry of Industry, Commerce and Supplies (MoICS) of Nepal, said, “Pashmina is a manifestation of the Nepalese identity and culture that is cherished and shared with the rest of the world.”

Olivier Marty, Senior Trade Strategy Adviser at ITC, reiterated the need to build consensus and support for the plan of action of the National Pashmina Export Strategy.

Mim Hamal, Senior Programme Manager at the EU Delegation to Nepal, highlighted that the pashmina sector strategy fits perfectly with Nepal’s development objectives as it aspires to graduate from Least Developed Country (LDC) category by 2022. “The EU, which opens its single market to Nepali products, is proud to host this initiative and believes that the sector has the potential to contribute to the reduction of rural poverty, and create decent jobs for women and youth,” he added.

  • The PSES includes a detailed five-year plan of action with a set of activities to provide a solid foundation for the growth of the sector, including the development of backward integration
  • The TIP aims to strengthen the capacities of pashmina related trade support institutions and increase capabilities throughout Nepal’s pashmina value chain with a view to connecting farmers to the market
  • The TIP is working closely with stakeholders to enable pashmina farmers to benefit from the added value of fibre and improve competitiveness
  • PSES is fully aligned with government policies, cleaner production as per the EU green deal, and farm to fork strategies
  • The strategy focuses on establishing a favorable policy and regulatory framework as well as reinforcing institutional support in order to access markets and prepare for the post-COVID-19 recovery

Confirming that the Ministry of Land Management, Agriculture and Cooperative (MoLMAC) of Gandaki Province is committed to work with all stakeholders, Sabnam Shivakoti, Secretary at the MoLMAC, remarked, “The pashmina sector has tremendous opportunities in product development. This strategy will help address the challenges in fibre production, linking the farmers to the industry.”