Inflation causes problems for Nepal's carpet industry
Two of Nepal’s carpet manufacturers have been forced to increase prices of the carpets they make because of the current global economic situation.
Costs of transporting the products and of the raw materials used to manufacture the carpets have forced the higher prices on the company.
Nepali carpets are sought after because they are cheaper than imported options, however the raw materials have to be purchased from outside of Nepal and these have become more expensive on the international market.
The difficulty for the Nepali carpet producers is that imported carpets are not increasing in price so that difference between the two flooring options is narrowing.
This will potentially cause problems for those native manufacturers because there will be less incentive for consumers to choose Nepalese carpets.
In Nepal carpets are exported to many other countries and since 2000 a large part of the country’s export business has involved carpet and rugs which are manufactured in the country.
However international awareness of how some of these products are made has meant a number of consumers boycotting Nepalese carpets in order to curb child labour in the factories.
Nepalese carpets are largely exported to the European Union and the handmade carpets and rugs are bought for the authenticity and intricacy of the flooring.