8. Product development program

Product development program will be divided into two separate groups and implemented. In the first priority group, labor-intensive goods that have been established in the export market will be developed as a special focus area. In particular, ready-made garments, woolen carpets and handicraft items will fall under this priority group. In the second group, agricultural products, handicrafts and forest products, which have great potential for export, will be implemented as priority areas. In this group, emphasis will be given to promote exports of tea, vegetable seeds, herbs, ginger and cardamom etc. 8.1 Special Focus Areas In accordance with the provisions of the organization, taking into account the changed situation after the end of the quota system and the possible high competition in the international market, the necessary programs for the sustainable development of Nepali clothing, ready-made clothing and cotton towels will be implemented in a phased manner.

8.1.1 2. National level guidance will be formulated and implemented on the basis of the findings obtained from the study to determine the long-term strategy to be adopted to increase the export of ready-made garments and cotton towels. 8.1.1.3 GSP For convenience, the rules of origin of goods will be taken into consideration and necessary policies and infrastructures will be arranged for the establishment of yarn and textile industries by establishing links for the sustainable development of textile-based products such as ready-to-wear and cotton towels. Emphasis will be placed on product development in coordination with domestic and large indigenous textile industries that are currently operating. 8.1.1.4 To increase the competitiveness of the ready-made garment industry, the concept of ready-made garment processing sector will be prioritized and feasibility studies will be conducted and other necessary steps will be taken for the establishment of such sector. 8.1.1.5 Trade opportunities created by open policy in international trade of ready-made garmentsPromotional activities will be done in partnership with the private sector to diversify the ready-to-wear market to take maximum advantage from. 8.1.1.6 Taking into consideration that exports to major international markets have decreased due to the removal of the quota system after 2005 due to the opening of trade, steps taken to gain duty-free access to such markets will be continued. 8.1.1.7 Encouragement will be given to establish fashion technology institutes from the private sector for the skilled manpower required to encourage the production of ready-to-wear with higher value addition. 8.1.2. Carpets and woolen goods 8.1.2.1 By maintaining the identity of Nepali carpets in the international market, the branding and labeling of Nepali carpets will be carried forward to prevent a decline in its export volume. 8.1.2.2 For the management of Nepal carpet labelling, arrangements will be made for testing and certification by the Department of Quality and Weights and Measures. In addition, necessary initiatives will be taken to continue the special customs exemption facilities currently being provided in major markets. 8.1.2.3 In order to determine a solid policy regarding the use of machine-made yarn, a cost-benefit analysis will be conducted taking into account the demand and price competition of carpets in the international market. 8.1.2.4 In order to maintain the established quality of Nepali carpets, the relevant importer must submit to the customs office the certification document of testing the quality of imported wool used in carpet production. 8.1.2.5 Pre-production and export inspection will be made effective to ensure the quality of Nepali carpets. 8.1.2.6 In order not to harm the existing image of Nepali carpets in the international market, to avoid the situation of export of foreign carpets in the name of Nepali carpets, any type of counterfeiting will be completely discouraged by controlling the importation of woolen carpets. 8.1.2.7 For the production of carpets and woolen products, a feasibility study will be conducted to bring an integrated program related to the production of wool within the country. Especially the Tibetan type of wool productionwill be given importance. 8.1.2.8 In order to continue the export of quality carpets and access to foreign markets, the system for determining the quality of carpets, child labor-free certification, and environmental certification will be made effective. 8.1.2.9 In order to diversify the market for export, promotion programs will be conducted in the American market including the European market and other potential markets. 8.1.2.10 The processes related to the production of carpets including mixing, cutting and dyeing, design and quality institutional arrangements will be established by establishing a carpet school with the participation of the private sector and supporting the development of skilled manpower. 8.1.3 Pashmina and silk products 8.1.3.1 The production work will be encouraged based on commercial feasibility to supply the main raw materials needed to produce pashmina and silk products on a permanent and long-term basis. 8.1.3.2 To produce raw materials, local businessmen will be encouraged by providing necessary capital and technology for raising chickens. 8.1.3.3 The work from kimbu cultivation, which is the raw material of silk, to textile production, will be encouraged with special priority by making proper provision of necessary capital and technology for silk production on a large scale. 8.1.3.4 To maintain the quality of pashmina and silk products, priority will be given to effective quality testing system and registration of trademarks in major export countries. 8.1.3.5 The model project will be put into operation as a model project for the potential rural areas under the supervision and monitoring of the technicians to develop the changra farming with the concept of cooperatives and modern technology. 8.1.3.6 Exports will be encouraged by providing market opportunities by reducing production and export costs, developing competitiveness and providing market opportunities through appropriate promotional programs. 8.1.3.7 Support will be provided in the development of human resources as required for silk, pashmina production and export. 8.1.3.8 Development of pashmina and silk product page and front linkyes 8.1.3.9 The center will be utilized to the maximum for the diversity of pashmina and silk products production. 8.1.4. Handicrafts 8.1.4.1 Especially, Pashmina, woolen goods, silverware, metal products and handmade paper, which are exported in large quantities, will be supported to develop as major export items. 8.1.4.2 Various programs will be conducted under the leadership of the Nepal Handicraft Federation with the participation of the Government of Nepal to carry out training and research activities related to production diversification, design, quality development and market access of handicraft items under one umbrella. In addition, the Handicraft Design and Development Center will be developed as an establishment that provides design services. 8.1.4.3 The export payment system for handicrafts will be simplified by reviewing the advance payment and export payment system. In particular, arrangements will be made for importing and repurchasing samples and exporting them under the repurchase arrangement. 8.1.4.4 Export payment of handicrafts by L.C. Apart from through, arrangements will be made on the basis of payment after submitting documents to others. 8.1.4.5 Arrangements will be made to refund the exported amount at a flat rate to make the refund of customs duty to be received by the handicraft producers practical and effective. 8.1.4.6 All the bodies providing various recommendations necessary for the export of handicrafts will be kept in one place to bring simplicity and speed in the said work. 8.1.4.7 All government agencies (customs, archeology department, security police and other necessary agencies) will be kept in one place and checked at the same time while passing the customs inspection. 8.1.4.8 Necessary arrangements will be made in coordination with the relevant agencies to make the archaeological inspection pass system of handicrafts hassle-free and modern. 8.1.4.9 Comprehensive work in coordination with the Ministry of Forestry and the Forest Product Development Committee, taking into account the economic flow from the practice of production and collection of folk paper required for the production of Nepali paper products to the rural areas.Rum will be conducted. 8.2 Due to the abundant potential of export of the emphasized area, the production of agricultural products under the emphasized area development will be greatly increased and coordinated between the relevant government and private sector agencies to improve the competitiveness. As mentioned in the specific objectives of the trade policy, the agricultural products under the emphasized area The goal will be to improve the value addition by using the local resources of the goods and bring the returns obtained from the export of these goods to the people's level. The long-term agricultural plan and periodical plan implemented by the government aims to support the poverty alleviation by recognizing the agricultural sector as the leading sector of the economy, so the export of agricultural products will be promoted in an integrated manner in the commercial policy. In particular, the program will be implemented to commercialize the export of tea, vegetable seeds, cardamom, ginger and herbs, which have a comparative advantage in export trade. Apart from these, efforts will be made to expand market entry facilities for other items that are constantly increasing in exports. 8.2.1. Tea 8.2.1.1 Nepali tea will be established as a major export commodity, taking into account the advantages of Nepal's geographical diversity and climatic advantages and comparative advantage. 8.2.1.2 An integrated program will be formulated in coordination with the Ministry of Agriculture, Tea Development Committee and other related agencies to develop the eastern region of the country as a tea region for increasing the production capacity and qualitative improvement of tea. 8.2.1.3 Considering the international demand of tea, establishment of contract farming system and tea-estate will be encouraged to increase the commercial capacity to bring continuity and reliability in production. 8.2.1.4 Orthodox tea and C.T.C. The production and promotion of tea will be encouraged considering the nature of different markets. 8.2.1.5 Promotional program will be conducted in Japan, France and Germany especially for orthodox tea while C.T.C. ChiakFor this, special steps will be taken for market expansion in Pakistan market including India and Middle Eastern countries. 8.2.1.6 The tea development fund that is currently being implemented to promote investment will be made more effective by increasing tea production and taking advantage of the economy of scale production. Special steps will be taken to encourage the investment of this fund in the international marketing of tea. 8.2.1.7 Small tea farmers and producers will be encouraged and marketed, necessary steps will be taken to implement promotional programs compatible with the partnership of private and charitable organizations or international trade. 8.2.1.8 Quality testing and certification of tea will be arranged in accordance with the demand of international consumers and prevailing rules. 8.2.1.9 Construction of feeder road between tea garden and production center will reduce transportation cost. 8.2.2 Vegetable seeds 8.2.2.1 Due to geographical and environmental diversity, opportunities for production and export of vegetable seeds will be utilized with the participation of the private sector. 8.2.2.2 Major seed production areas - Rukum, Salyan, Jumla, Kalikot and Nuwakot will be marketed and commercialized and expanded to other districts as well. 8.2.2.3 The private sector will be supported to regularly participate in agricultural fairs in Bangladesh, which is seen as a major market for Nepali seeds, and in Middle East Asia, Japan and India, where there is potential. 8.2.2.4 Necessary actions will be taken with the relevant agencies to coordinate the production and export of Minorli Mula, Chamsurko Saag, Rayo and bean seeds exported from Nepal, taking care of the quality, advanced and racial purity. 8.2.2.5 Concessions will be given on agricultural materials and packing materials required for seed production and export. Also, a system will be introduced to import only quality seeds. 8.2.3 Cardamom 8.2.3.1 Based on the feasibility study, capital and technology assistance will be arranged to expand the production of cardamom. 8.2.3.2 Establishing “national standards” of quality and grading and improving production and processing practices to maintain standardsIt will be done to increase exports through objective and national diversification. 8.2.3.3 Necessary assistance will be provided with the help of diplomatic missions abroad to promote Nepali cardamom in export potential countries. 8.2.3.4 Potential for value addition will be identified and encouraged. 8.2.4. Pulses 8.2.4.1 A special program related to the development of pulse crops will be conducted through the Ministry of Agriculture and Cooperatives to increase production and productivity through the provision of advanced seeds and developed production technology. 8.2.4.2 Technical services, training and seeds necessary for pulse crop development will be provided with the help of related service organizations to set production and export targets. 8.2.4.3 Efforts will be made to expand the capacity of established laboratories to issue health certificates and get international recognition. 8.2.4.4 The certification system will be made effective to develop competitiveness in the international market. 8.2.5. Flower business 8.2.5.1 Coordination between production and market demand, flower business will be developed by providing necessary plants, capital, technology and training to produce exportable flowers. 8.2.5.2 For the development of exportable flower business, flower business sector will be identified and production will be encouraged. 8.2.5.3 Assistance will be provided in market study, promotion, investment and transportation for international market entry. 8.2.5.4 In order to increase reliability in terms of the quality of exported flowers, arrangements will be made for certification by adopting a quality system according to international practice. 8.2.5.5 To reduce the risk, air-conditioned transport system and cold storage facility will be provided at the airport. 8.2.6. Precious/semi-precious stones and gold and silver jewelry 8.2.6.1 Precious and semi-precious stones and gold and silver jewelry production, development and promotion of the export of precious and semi-precious stones will be made free of tax and simplified importation of raw materials necessary for the production of jewelry will be made tax-free and simplified. 8.2.6.2 Precious and Semi-Precious Stones, Precious Metals and Stone Intensives by Encouraging MiningArrangements for production, import, export and re-export will be arranged. 8.2.6.3 Taxes and customs duties will be exempted on the importation of machine tools and tools required for the industry of producing and exporting precious/semi-precious stones and jewelry.

8.2.6.4 Targeting specific markets The production of jewelry will be encouraged. 8.2.6.5 Additional promotional activities will be done to provide export market opportunities by arranging the necessary capital for the production of various types of gemstones and gold and silver jewelry and to build up a sufficient collection. 8.2.6.6 Arrangements will be made to provide necessary training to make the Kaligarhs who make gold and silver ornaments more efficient. 8.2.7. Processed leather 8.2.7.1 Capital and technical assistance will be provided for commercial animal husbandry based on feasibility to arrange supply of quality raw leather. 8.2.7.2 Export of processed leather and leather goods will be encouraged. 8.2.7.3 Assistance will be given in the necessary machinery and technology to prepare fully processed leather. 8.2.7.4 An effective market promotion program will be conducted for international market access. 8.2.7.5 Foreign investment in leather processing will be encouraged. 8.2.7.6 Simple interest loan facilities will be arranged for importing machinery and equipment. 8.2.7.7 Facilities will be established and provided to fully process the semi-processed leather. 8.2.8. Ginger-Sutho 8.2.8.1 For the production of quality sutho, ginger cultivation of suitable varieties will be done with the help of related agencies and the pocket area will be determined and capital, technology and seeds will be arranged. 8.2.8.2 A market will be arranged for the produced ginger. 8.2.8.3 The certification system and promotional program will be implemented to enter the international market by diversifying ginger production.

8.2.8.4 Training in various aspects from production to sales promotion for commercial and advanced ginger cultivation. will be provided. 8.2.8.5 Assistance in the purification and transportation of ginger-based export goods will be provided. 8.2.9. Herbs and essential oils 8.2.9.1Efforts will be made to obtain international recognition in the testing technology by developing a facility-based testing laboratory for the production and processing of herbs and providing testing and certification services. 8.2.9.2 Capital, technology and training will be arranged for the development of commercial farming system for production, grading, storage and collection of high value herbs and essential oils. 8.2.9.3 Production of exportable ready and semi-ready products will be encouraged to increase the value of herbal products. 8.2.9.4 Market research, search and promotional program will be conducted to promote the export of herbs and herbal products. 8.2.9.5 Places suitable for herb production will be given priority as pocket areas and production will be encouraged through the concept of cooperation. 8.2.10. Hand paper and its production 8.2.10.1 In order to develop the supply capacity and quality of hand paper and products made from it, the availability of raw materials will be expanded by expanding the protection and systematic production of people. 8.2.10.2 Necessary capital, technology and training will be arranged to produce Lokta and Nepali paper. 8.2.10.3 Support will be provided in the development of Lokta paper production technology. 8.2.10.4 In addition to diversifying the production of handmade paper-based items, promotional activities will be conducted to provide maximum use of the design center and market opportunities. 8.2.11. Woodwork products 8.2.11.1 To produce quality woodwork-based products according to international market demand, support will be provided to facilitate wood seasoning and continuous supply. 8.2.11.2 Promotional program will be conducted by expanding the research, training, product development and export capacity to produce woodwork products in line with market diversification of woodwork products. 8.2.11.3 Tax and customs duty exemption facilities will be provided for the importation of machinery and equipment required for the production of exportable woodwork items, and electricity supply and infrastructure arrangements necessary for production will be adopted. of 8.2.11.4Facilitation and concessions will be provided in the export of handicrafts. 8.2.11.5 A program will be conducted to improve the quality of woodwork items through training. 8.2.11.6 The Handicraft Design Center will be used to the maximum extent in the production development of new products based on woodwork. 8.2.11.7 Prepared goods facility will be established to support the export of woodwork products. 8.2.12. Coffee 8.2.12.1 In order to increase coffee production, more areas of coffee production will be identified and exports will be promoted by adopting quality highland and organic coffee production, processing and grading and standardization techniques. 8.2.12.2 Group production will be encouraged through the concept of cooperatives to export quality coffee in quantity as per demand. 8.2.12.3 To attract the farmers to produce quality coffee, high quality plants and other necessary facilities will be easily arranged. 8.2.13. Honey 8.2.13.1 To maintain credibility in the international market of honey, quality will be verified through the development of internationally recognized testing laboratories. 8.2.13.2 Effective inspection and supervision of beekeeping and honey production will be done to maintain quality. 8.2.13.3 The production of honey will be diversified by encouraging the production of honey with Nepalese characteristics, especially based on mustard and sasru flowers. 8.2.13.4 Arrangements will be made to improve the packaging system of honey, including tax and customs duty exemption for importers of exportable honey processing machinery. 8.2.13.5 To encourage the production of exportable organic honey, support will be provided to the producers by arranging the necessary capital and technology for the establishment of a suitable foundation. 8.2.13.6 The countries that import honey will be identified and promotional measures will be adopted. 8.2.14. Junar 8.2.14.1 In order to make Junar and its based products exportable, necessary infrastructure arrangements for quality determination, investment and storage will be provided as well as training for skill development of farmers. 8.2.14.2 Inclusion of Exportable JunarIn addition to the use of modern technology, concessions will be given in the cost of transportation. 8.2.14.3 The procedure of national level determination and grading will be implemented to give commercial identity to Nepali junar. 8.2.14.4 Potential export countries will be identified and efforts will be made for market access. 8.2.14.5 Farmers will be informed about market arrangements and sales promotion along with the development of infrastructure in the junar collection area. 8.2.14.6 Necessary seed selection and technology will be arranged for the production of advanced varieties of junar. 8.2.15. Vegetables 8.2.15.1 The production of organic fresh and dry vegetables will be encouraged. 8.2.15.2 Cold storage will be constructed at the main customs points to promote the export of produced vegetables. 8.2.15.3 Arrangements will be made for movement of containers at the dry port of Birganj to support the export of vegetables by maintaining a regular supply. 8.2.15.4 A mechanism will be developed to identify the areas where vegetables are produced and to recognize those areas and to issue test certificates of the produced vegetables. 8.2.15.5 Importers of foreign countries will be encouraged to produce vegetables in Nepal and export through them.