KATHMANDU: Nepal’s ready-made garment export to US has plunged by 13 per cent when compared to the corresponding period last year. According to data unveiled by Garment Association Nepal (GAN), garment worth $568,309.07 was exported to the US this March. During the same period last year, total value of the garment export was $678694.

Meanwhile, total RMG exported fell from 1,712 kilos last February plunged by 60 per cent.

After exemption of four per cent additional charge by India, garment industries here are hopeful of getting a minimum increment of 25 per cent in export this fiscal. Over the recent years, India has emerged as another large market for Nepali RMG as the total export of Nepali RMG to India has grown to 50 per cent while export to the US is declining. There was a fall of 90 per cent in 2009 in the total export of garment to the US compared to 2005 export data.

Meanwhile, to increase trade and investment and make Free Trade Agreement with the US, GAN has urged the government to add two additional clauses in the Trade and Investment Framework Agreement draft. The US has proposed a TIFA draft to Nepal.

A government team, comprising FNCCI president Kush Kumar Joshi, GAN president Prashanta Kumar Pokhrel, GAN past president Kiran Sakha, MoCS joint-secretary Surya Silwal, MoCS secretary Purushottam Ojha and TPC executive director Ramesh Shrestha, is flying to the US tomorrow night for the TIFA process.

According to GAN, garment industrialists are getting few orders and even then they are unable to supply orders on time. GAN has cited factors such as labor unrest, power cuts and strikes as prime culprits in this regard. Even if the industrialists get some orders, they are unable to complete the orders for two to three months due to dearth of bank loan. There are about 20 to 25 small industries and five large-scale industries in the country.