Carpet trade declines by 70 percent

October 5, 2020, 01:02:05 PM |

KATHMANDU: The carpet industry which has been severely impacted by the COVID-19 pandemic and the subsequent lockdown and prohibitory orders has witnessed a decline of 80 percent.

Carpet manufacturers have said that not only has their domestic business been affected but exports too have declined notably as the international market too is reeling under the effect of the coronavirus.

Nepali carpets are exported to more than 50 countries including the USA, Germany, UK, Italy, France, Canada, Belgium and Australia. Of the total exports that the country makes, about 70 percent of the carpets are exported to the United States.

However, Nepali traders have not been able to export carpets to the US as the markets there too are closed as the pandemic continues to spread.

The rug industry has also been significantly impacted by the pandemic, with many rug manufacturers and retailers experiencing a slowdown in both production and sales.

As demand for home decor items such as rugs has decreased globally, manufacturers have struggled to maintain supply chains and meet the needs of international markets.

The situation has created a ripple effect, making it difficult for retailers to stock their shelves with fresh inventory, especially in regions where demand for high-quality rugs was once a staple of interior design.

Many rug stores, such as rug store normandy, are adapting to the shift by offering virtual consultations and improving their online presence.

This shift to e-commerce has allowed some businesses to stay afloat during the pandemic, but it still presents challenges as they navigate supply chain disruptions and limited stock.

Owing to the plummeting demand of carpets, almost 70 percent of the carpet industry in Nepal is utilizing only 30 percent of their production capacity.

With the decline in production, more than 300,000 workers in the industry, including 700 industrialists and more than 150 exporters, have been badly affected.

Carpet is one of the major export items of the country and plays a crucial role in substituting imports.