RMG export to US down
KATHMANDU: Nepali readymade garment (RMG) export to the US plunged by 60 per cent in February compared to the same month last year. Total garment export in February was worth $361,918.55. However, after waiver of the four per cent additional charge in the Indian
budget, garment industries here are hopeful of an increase of
25 per cent at least in export
this fiscal year.
Garment Association Nepal (GAN) president Prashant Kumar Pokharel said that over recent years India has emerged as another large market for Nepali RMG, with the total export of Nepali RMG to India going up to 50 per cent while total garment export to the US is declining. There was a fall by 90 per cent during 2009 in the total export
of garment to the US compared to 2005 export data. Due to India’s four percent CVD, Nepal’s garment export to India
declined by a whopping
83.9 percent in the first five months of this fiscal year.
According to Pokharel, the waiver of the four per cent additional charge on RMG export will certainly benefit the garment industry but still there is still a lot to do for the overall revival of the industry. There are about 20-25 small industries and five large industries surviving till date. “The plan to place garment processing zone in the Export Promotion Zone is in limbo since seven years,” said Pokharel adding that there is lack of security and labour flexibility.