200,000 Carpet Workers Jobless In Nepal
Demanding that monthly wage of people working in carpet industries be increased to Rs 5,000 labor unions affiliated to Maoists had padlocked offices of NWCEA and 10 major carpet factories some 25 days ago, NWCEA said in a press statement.
“Due to the closure, manufacturers have not only been forced to bear losses worth millions of rupees but around 200,000 workers have virtually lost their livelihood,” states the release. “Those who are benefiting from the closure are Indian companies.”
According to the release, India had exported 2.61 million square feet of carpets to various countries in Europe in the first six months of 2006, compared to 450,000 square feet exported by Nepali companies. “The only reason for this was Nepal's inability to compete with Indian products,” states the release.
Indian companies have fixed Rs 400 as labor cost for production of one square meter of a 60-knot carpet, adds the release.
“Whereas in Nepal the basic salary of people working in carpet factories have been fixed at Rs 3,300 per month,” states the release. “Due to this reason the price of Nepali carpet in international market is 60 percent more than that being supplied by Indian companies.”
Another reason for the slump in export of Nepali carpets is the government's ban on production of carpets made of machine-made wool. “Carpets made of handmade wool are comparatively more expensive,” adds the release.