E-Kantipur

KATHMANDU, MAR 04 -

With decline in export of silver products, handicraft exporters are pinning their hopes on cadmium testing lab. The Federation of Handicraft Associations of Nepal (FHAN) has planned to set up a cadmium testing lab with an investment of Rs 12 million. It recently signed a memorandum of understanding with the government to set up the lab within this fiscal year.

According to exporters, the lab would provide a much needed boost to manufacturers of silver products. Nepal’s exports of silver products have been declining due to soaring silver prices and lack of an international standard lab in

the country.

The export of silver products has declined by more than 60 percent during the first six months of the current fiscal year compared to the same period last year. According to Nepal Rastra Bank, exports plunged to Rs 38.5 million from Rs 103.8 million.

Suresh Shahi of Mahaguthi Nepal said the testing lab would help in increasing exports of silver products. “Many traders have shifted to manufacturing items made of white metal, brass and copper due to a fall in demand for silver products.” Tourists, who are major buyers of silver products in the local market, have become disinclined to purchase them due to the possibility of the silver being mixed with cadmium. Three years ago, the European Union (EU) put restrictions on the use of silver items mixed with cadmium due to its adverse effects on health. “The testing lab will guarantee the purity of the silver used,” said Kulman Shakya, proprietor of Kabish Art Palace. Shiva Prabha Gurung of Thamel Export House said certification by the testing lab would increase confidence among exporters. Local bullion traders said sales of silver products including jewellery in the local market had fallen by 10 percent. Traders are currently selling an average of 200 kg of silver products daily. According to Tej Ratna Shakya, president of the Nepal Gold Silver Dealers Association, the European Union has also demanded that FHAN go for certification of silver products by 2010. “Although the cadmium lab has targeted export promotion now, it will also benefit the local market in the long term.”

Nepal Trade Integration Strategy 2010 has identified local silver products among 19 different items with high export potential. The US, Japan and many countries of the EU are among the major markets for Nepal’s silver products while Russia, South Korea and South Africa are potential markets.

Posted on: 2011-03-04 09:13

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