The announcement has sent shock waves through Nepali export circles because cadmium is widely mixed in silver in Nepal and other South Asian countries. If traders are to ascertain zero cadmium content, they will have to change their sources of silver, something that they detest doing. [break]
Furthermore, the Department of Standards and Metrology (DoSM) will need to import modern testing equipment for certifying that a silver item is cadmium-free. Presently, there is no cadmium-detecting equipment in the country.
“Exporters were rattled especially after one of the EU member countries found Nepali exports containing the toxic metal,” said Ramesh Kumar Shrestha, executive director of the Trade and Export Promotion Center (TEPC).
Cadmium is a toxic metal that is very difficult to separate from silver. It causes allergic reactions and sores on the skin, and inhalation of its fumes does serious damage to the respiratory track and kidneys.
Citing such health hazards, the EU has announced it will ban entry of cadmium containing goods.
“Presence of cadmium in Nepali silver items is a matter of serious concern - not just for overseas consumers but also for Nepalis who use silver items for jewelry and household purposes,” said Kamal Manandhar, chief of the Industrial Energy Management Project.
Traders, however, are concerned mainly about the possible adverse impact the EU decision will have on silver jewelry exports.
Silver jewelry has been one of the growing handicraft exports of the country and was affected neither by domestic unrest nor by the global economic slowdown. This export has been growing since the last two decades and commands some 12 percent weight in total handicraft exports.
According to statistics at the Federation of Handicraft Associations of Nepal (FHAN), silver exports in 2008/09 totaled Rs 361.90 million.
Pushkar Man Shakya, president of FHAN, said the federation has already informed the government about the EU notification and the risks it poses to Nepali silver jewelry exports. “As we will need cadmium-free certification from an accredited government institution to continue exports, we have requested the government to upgrade the testing capacity at DoSM,” he said.
Addressing a function on Friday, Industry Minister Mahendra Prasad Yadav said that the ministry will provide policy and procedural support to the private sector for controlling use of cadmium in silver goods.
At the same time, he also stressed that manufacturers should correct their behavior and make domestic consumers aware about the hazards of using impure silver jewelry.
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