The government’s decision to resume the use of handmade Lokta paper in government documentation and citizenship certificate generated high hopes but there is no domestic market for it yet.

On March 9, 2009 when the government decided to reuse Lokta paper after an interval of 11 years it brought great hope to the people related to the Lokta paper industry. “Along with the decision there started mass production of Nepali handmade paper but compared to the production there was no demand in the market,” said Dr Milan Dev Bhattarai, director of Get Paper Industries.

According to Bhattarai, during the six-month period handmade paper worth Rs 180-200 million was produced but there was no market. “The demand in the domestic market is lacking but the export quantity is constant,” added Bhattarai. Annually, handmade paper worth Rs 300 million is exported, with the export volume remaining constant. At present, there are 55,000 families directly and indirectly involved in the handmade paper sector in the value chain.

“The lack of demand is not only due to pending use of Lokta paper in government documents, it is also because of lack of product diversification and market identification at the domestic level,” Bhattarai said.

From 2009, in coordination with EU and GTZ, Switch Asia Project is running in 22 districts to train people in rural areas for quality production of Lokta paper. “Along with the training programme being conducted in rural areas of the country the paper quality has increased. However, there is no demand growth in the market,” said Kiran Dangol, vice-president of Federation of Handicraft Association of Nepal (FHAN).

He added that there is a need for direct interaction between the buyers and sellers. “Focusing on that problem, we are trying to organise direct marketing programme and inform people about product development,” said Dangol.

In Kathmandu Valley, there are 40-50 Lokta paper exporters and about 25 per cent of the total Lokta paper produced for export is consumed in the local market. The cabinet on March 9, 2009 decided to resume the use of Lokta paper, giving it a fresh lease of life.

Source: http://www.thehimalayantimes.com/fullNews.php?headline=Lokta+paper+lacks+domestic+market&NewsID=219643
Updated on: 2010-01-07 11:01 PM