December 9: Although the government has facilitated the import of raw material for the textile industry, the carpet industry is deprived of the same facility. 

The carpet industry operating in the country with a total investment of Rs 1.5 billion has been at the receiving end due to the unfair policy of the government.

The import of yarn required for textile and carpet industries is subject to 5 percent customs duty. However, the raw material (polypropylene) required for making the same yarn is subject to 10 percent customs duty. Anupam Rathi, the director of Hitex Carpet, said that the industries have been facing problems due to the fact that the customs duty for raw material is more expensive than the customs duty for manufactured materials. 

Rathi also complained that the carpets produced by the industry did not get subsidies like other carpet and textile industries. However, the garment industry is getting this facility, said Rathi. 

He handed over a letter to Finance Minister Janardan Sharma, who arrived in Biratnagar three days ago, to resolve the problems faced by the industries in production and export of yarn and carpet. 

Rathi argues that the carpet industry must be categorized as a textile industry and provided with the facilities that a textile industry is given. He has been putting forth this demand since the last four years.

“In all the major carpet producing countries including India, such industries are considered as textile industries,” said Rathi, “However, in Nepal, textile means garment industry that makes shirting and suiting products. The jute industry also falls under the textile category.” 

Hitex Carpet is also producing yarn itself. “We are producing carpet yarn. However, the customs duty has made it difficult for us,” he said, adding, “Importing ready-made yarn costs 5 percent customs duty, the customs duty on raw material for yarn is 10 percent.”