The inside thread: Weaving a pashmina supply chain in Nepal
Nepal produces the world’s finest pashmina, rooted in a deeply Buddhist ethos around care for the goats that produce the cashmere.
Due to the absence of spinning yarn or weaving fabric facilities in Nepal until recently, farmers had no choice but to sell all their raw pashmina in the marketplaces of neighbouring countries.
To unlock more income for Nepalese producers, ITC worked with the government to put into action a strategy that created the country’s first complete value chain for pashmina. From caring for goats to spinning yarn to weaving fabrics, the entire process takes place locally. That drove up production by one-third, and at about 80% higher prices than farmers had ever received.
Anchoring a deep cultural respect for Chyangra goats
Cashmere goats live in several countries, but Chyangra goats that produce the finest fibres are native to the Himalayas in Nepal. To survive the extremely cold winters, the goats evolved an ultra-soft, dense undercoat. Among the indigenous communities in 15 high mountain districts of Nepal, including Mustang, Dolpa and Manang districts, the goats are revered as part of the ecosystem and household.
In alignment with Buddhist beliefs, these animals are never slaughtered—not even for food. Instead, farmers practice compassionate herding, ensuring that the goats live freely in their natural environment while receiving proper care.
In an industry often scrutinized for its treatment of animals, Nepal's pashmina sector stands out as a model of ethical fibre harvesting supporting animal welfare. Some people are reluctant to even comb their goats to collect their hair, for fear of hurting the animals. But the hair is highly prized because it’s so fine.
Harvesting without harm
To overcome fears that farmers would harm their goats by collecting their cashmere, the International Trade Centre (ITC) taught 1,000 farmers in Mustang and Dolpa the skills of humane fibre combing, sorting and grading. ITC also taught 36 local trainers how to teach the skill, so that they can spread that knowledge to other regions. To improve fibre collection, 1,250 combs were given to farmers across Mustang, Manang, Dolpa, and Humla districts.
As the next step, ITC trained 41 women in hand spinning using paddle-operated Charkhas, an improved version of the traditional spinning machine. These workshops cultivated a larger pool of skilled spinners to support the domestic industry's demand.
Linking farmers to final products
Previously, the pashmina would have been exported to neighbouring Tibet in China. Since 2021, farmers sold over six tonnes of Chyangra raw fibre the Nepal Pashmina Industries Association (NPIA).
But in 2024, farmers sold an extra two tonnes, at higher prices, thanks to the new Nepal Fibre Processing Company, set up by members of the NPIA in collaboration with the Ministry of Industry, Commerce, and Supplies and the World Bank. Local farmers from Mustang are shareholders in the new company, showing a clear path to long-term success and sustainable linkages.
ITC facilitated investments and economic growth
In 2024, ITC helped secure a budget from the Ministry of Finance and the World Bank to co-finance collection centres and processing equipment.
With ITC technical and advisory support, a model Chyangra farm opened in Lo Manthan (Upper Mustang)
NPIA partnered with the Research and Development Institute of Light Industry in Mongolia strengthened the research capabilities of both countries, creating opportunities for joint research, knowledge exchange, and skills development.
Nepali small businesses showcased their pashmina products made from Nepali fibres at international trade events such as the London Source Fashion in 2024, with the UK Trade Partnerships (UKTP) Programme at ITC. The exposure to UK market experts and designers further refined Nepali pashmina products, boosting their appeal in global fashion markets.
To improve the quality of Nepali pashmina, 880 Chyangra fibre samples were tested, with results showing that Nepali cashmere is among the finest globally. This testing, in collaboration with the National Animal Breeding and Genetics Research Centre and NPIA, provides a solid foundation for future breeding programmes aimed at improving fibre quality.
The Chyangra Pashmina brand for Nepali products is gaining momentum, with international recognition reinforcing the premium nature of the product.
Envisioning a truly Nepali supply chain
The Nepal Pashmina Sector Export Strategy outlines an ambitious vision to develop a self-sustaining Nepali supply and value chain.
With support from UKTP and the EU-Nepal Trade and Investment Project, the Nepalese pashmina industry is on the verge of a breakthrough.
The model pioneered by ITC can be replicated in 12 additional high-mountain districts where Chyangra goats are raised. Scaling backward integration with farmers and promoting forward linkages will ensure a consistent, high-quality product that carries the Nepali heritage to global markets.
About the programme
Under EU-Nepal Trade and Investment Programme (EU-TIP), the pashmina project developed a Chyangra Pashmina trade strategy and action plan involving stakeholders across the value chain by strengthening backward linkages with goat farmers in the Himalaya and develop a first-ever complete supply chain from fibre to the final export product, entirely made in Nepal.
The UKTP programme in Nepal promotes sustainable export markets for Nepalese pashmina products by strengthening forward linkages and providing comprehensive training and capacity building. The programme focuses on key areas such as environmental assessment, marketing and communications, and establishing B2B market linkages, among others.
