Nepal’s iconic woolen carpets—long a flagship of its handicraft exports—have suffered a significant decline in FY 2025/26. According to official trade data, exports fell by 26.6 percent in a single month, with earnings dropping to Rs. 820.5 million, compared to Rs. 1.11 billion during the same period last year.
For decades, handmade woolen carpets have represented one of Nepal’s most recognized cultural exports, finding strong demand in European and U.S. markets. However, shifting consumer tastes, the growing popularity of synthetic alternatives, and mounting production costs have eroded their global competitiveness.
In contrast, industrial textile products such as polyester yarn are showing resilience, with exports up 22.5 percent. The trend indicates a gradual structural shift in Nepal’s export portfolio away from traditional handicrafts toward more industrially produced goods.
Industry experts warn that unless innovation, branding, and modernization are prioritized, Nepal’s woolen carpets risk losing their historic role as both a cultural emblem and a vital economic pillar. Targeted government and industry support is seen as critical for reviving the sector and securing access to premium niche markets where authentic craftsmanship is still valued.
