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Home / Projects / Strengthening Market Access and Value Chain Development of Mountain Fibers in Nepal
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Strengthening Nepal's mountain fiber value chains — linking producers of Pashmina, wool, and Allo to premium global markets, improving quality and traceability, and mobilizing investment to create greater opportunities for rural communities.
The International Relations and Global Diplomacy Dialogue (IRGDD), in collaboration with the Food and Agriculture Organization of the United Nations (FAO), is implementing the project “Strengthening Market Access and Value Chain Development of Mountain Fibers in Nepal.”
Nepal’s mountain regions are home to distinctive and high-value natural fibers, including Chyangra Pashmina, yak and sheep wool, and Allo (Himalayan giant nettle fiber). These fibers have strong potential in premium domestic and international markets and can contribute to rural livelihoods, women’s entrepreneurship, value addition, and export diversification. However, fragmented value chains, limited market access, inconsistent quality, weak traceability, limited processing capacity, and inadequate investment continue to constrain their growth.
The project takes a market-oriented and value-chain approach to strengthen Nepal’s mountain fiber sector. It focuses on connecting producers and enterprises with international buyers, improving market readiness and compliance, promoting Nepal’s fiber products internationally, mobilizing investment, and introducing practical, locally adaptable technologies to improve processing efficiency, quality, productivity, and sustainability.
Key Areas of Work
Baseline Assessment – Assessing value chain structures, actors, opportunities, and challenges.
Market Access – Identifying high-potential export markets and facilitating market entry.
Buyer–Seller Linkages – Connecting Nepali producers and exporters with international buyers and brands.
Market Readiness & Traceability – Supporting quality standards, certification, compliance, and traceability from fiber origin to finished products.
Technology & Skills Development – Promoting affordable and locally appropriate technologies and improved processing techniques.
Investment Promotion – Connecting fiber enterprises with investors and financial partners to support growth and upgrading.
Trade Promotion & Branding – Increasing the visibility of Nepal’s mountain fibers through trade fairs, marketing, and origin-based branding, including Geographical Indication (GI) advocacy.
Our Vision
The project seeks to help transform Nepal’s mountain fiber value chains from fragmented and underdeveloped systems into competitive, connected, market-oriented, and sustainable value chains, creating greater opportunities and value for producers, artisans, enterprises, and rural communities.