Troubles for the khukuri industry in Nepal

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A recent article explains why 24 out of 30 khukuri manufacturers in Eastern Nepal (Dharan region) have shut down this year. China was their largest export market, and Russia was their second largest.

Khukuri exports cut sharply due to highway blockage
by PRADIP MAYANGBO, DHARAN
The Kathmandu Post

Nearly two dozen workshops that specialise in making khukuris, popularly known as Gurkha knives, have been shut down in the eastern region due to the closure of the Nepal-China trade route... China has been a major market for Nepali khukuris for the last four years, and demand has been growing. Around 70 percent of the output s exported to the northern neighbour. Locals said they had not been able to ship their products to market after the April 25 earthquake blocked the highway to China. As exports to China have stopped completely, a large number of locals have been put out of their traditional job. Many people here eke out a living by selling khukuris... Of the total 30 khukuri manufacturing plants in the eastern region, only six are still operating. “While most of the factories have shut down, those still operating are struggling to survive,” said Deepak Bishwokarma... Dharan is the top producer of khukuris in the eastern region. There are half a dozen big and a dozen small factories here. Besides Dharan, these traditional knives are produced in Jhapa, Itahari, Dhankuta and Bhojpur...Traders said that after China, Russia was the second largest export market accounting for nearly 20 percent of khukuri exports. However, due to political tensions in Russia, exports have dropped to zero... Published: 14-10-2015 09:01

http://kathmandupost.ekantipur.com/news/2015-10-14/khukuri-exports-cut-sharply-due-to-highway-blockage.html
 
To my limited knowledge, selling primarily to US customers is the cornerstone of the HI business model. I wouldn't see any reason why supply would dry up short of the known issues with the Maoist. American demand remains pretty strong as far as I can tell :)
 
HI does not sell to China or Russia. Shipments from here to those places have always been refused by customs.
This will not affect HI's business, except for maybe providing more available materials and more available kamis.
 
HI does not sell to China or Russia. Shipments from here to those places have always been refused by customs.
This will not affect HI's business, except for maybe providing more available materials and more available kamis.

So this is actually a great opportunity for expansion. Is HI well known in the Kami community?
 
So this is actually a great opportunity for expansion. Is HI well known in the Kami community?

Well.... it's is a double edged sword for sure. Expansion has not worked real well in the past. Dedicated and honest kami are what is needed, unfortunately not all kami are. It is a trial and error proposition. HI is well known enough, but not all kami can operate up to HI standards. I'm sure a few will find their way to us.
Actually though, expansion at this particular time is probably not possible with the Maoist problem and with India withholding needed supplies of fuel necessary for the country to operate, let alone small businesses. We can make all the khukuri we want, but without fuel, getting them exported becomes a tough proposition.
 
Thanks Karda.

I've Googled China-Nepal and India-Nepal relations. This is complex economic/politics stuff.
Looks like Nepal's neighbors are not too pleased with the recent constitution.
 
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