Garment exports to US dip by 42 per cent
Kathmandu, July 4:
Export of Nepali readymade garments to the US, which is the single largest market,
has dwindled further during the month of June by a massive 42 per cent, in terms of value of exports.
It is the sixth consecutive month this year that exports of Nepali textile and apparel products have lost steam. Garment exports to the US has been suffering from the very beginning of the year, as it witnessed a whopping decline of 54 per cent in January, 64 per cent in February, 47 per cent in March, three per cent in April and 63 per cent in May.
The industry has been in the doldrums for the last couple of years, following the termination of the quota regime under the Agreement on Textiles and Clothing (ATC) in January 2005.
Exports had suffered a loss of 30 per cent in 2004 and rose to 41 per cent in 2005. However, it slowed down with a drop of six per cent in 2006. As US alone absorbs more than 80 per cent of the total Nepali garment exports, single market concentration is blamed to be one of the major reasons for such a plummet.