The export of hand-knotted woolen carpet, the second largest overseas export for Nepal, witnessed another decline of 5.10 percent during the first eight months of the fiscal year 2006/07 mainly due to Nepal's eroding credibility as a reliable supplier, the Trade and Export Promotion Center (TEPC) stated on Sunday.

The export of carpets that started sliding after 2000/01 had witnessed a similar decline of almost 4 percent during the last fiscal year.

In terms of volume, export of carpet has gone down alarmingly to remain at less than half during the last one decade.

According to data compiled by TEPC, the value of carpet exported during the period stood at 48.9 million U.S. dollars whereas such exports during the same period last year were at 51.5 million dollars.

Most carpet industrialists blame the worsening industrial environment for the continued slump in the exports of carpet and predict an even bleaker road ahead.

"Strikes and labor problems have together taken their toll of major importers' confidence on our capacity to deliver orders on time," said Kabindra Nath Thakur, president of the Nepal Carpet Exporters Association.

As a result, orders for this year's export, which should have been received in February and March, has remained nominal.

"It has mainly gone to India," he said. If the situation continued, the total export might slip by over 20 percent by the end of this fiscal year in mid-July, he said.

According to the association, Nepal delivers export consignments to countries such as Germany, Turkey, Italy, France, Britain and the United States.

Source: Xinhua