Himalayan News Service

Kathmandu, March 6:

Exports of readymade garments to the US has been facing downward trend due to the buyer’s loss of interest and quota phase-out by the US for Nepali garments starting January 1 this year. According to Garment Association Nepal (GAN) — an association of readymade garments producers — the export of garments to US in the month of February has decreased by 56 per cent. Last year also, the export of readymade garments to US had gone down by 41 per cent in comparison to 2003. In 2003, however, it has increased by 72 per cent.

This is the highest decline in garment export following the quota phase out by US for Nepali readymade garments. In the month of January, the export of readymade garments has gone down by 46 per cent in comparison to the same month last year. In January last year also the garment export has declined by 31 per cent, comparatively. In the year 2002, the readymade garment exports had gone down by 56 per cent. However, in 2001, the export of readymade garments to US was increased by 12 per cent, in comparison to the year ahead. US alone occupy largest market for Nepali readymade garments which stands over 80 per cent.

Garment exporters have been saying that only about 25 industries are in operation for the past two years despite the fact that 200 units more were in operation some year ago. Kiran Sakha, president of GAN, said the current declining rate is quite high in comparison to previous years.

“Immediate recovery is not expected,” he said, adding that producers were also afraid of declining export of readymade garments. Due to transportation blockades at regular intervals, the downward trend is expected at much higher rate,” worried Sakha. “Businesspersons at home and buyers abroad are in a dilemma,” he said, adding that they are demanding Garment Processing Zone (GPZ) for garment manufacturers. In the year 2001, $22040184.23 worth of readymade garments was exported to USA in February while in the year 2002, it was only $9786425.47 (a decline by 56 per cent in comparison to previous year). Similarly, in the year 2003 during February the export was valued at $16868604.67 and in the year 2004’s in the same month, it was recorded at $9905349.28, states a GAN report. This year in February the export further went down by 56 per cent, which stands at $4455332.06.