RMG sector seeks helpline for revival

KATHMANDU: Export of Nepali readymade garment (RMG) in September fell by 86 per cent, with the RMG export worth being $90,860.43.

Garment Association Nepal (GAN) president Prashant Kumar Pokharel said the government should take steps for the revival of garment export.

Pokharel said, “When Foreign Minister Sujata Koirala went to

the US, American senators were positive

about granting duty free access to Nepali

RMG and talks were also held regarding a trade treaty between the two countries.”

According to GAN, in August the total RMG export plunged by 81 per cent and Nepali RMG exported was worth $1,45,000 then. Pokharel said the trade agreement can revive the export of RMG. During the visit of the United States Trade Representatives to Nepal a trade agreement draft proposal was prepared to facilitate duty free access of Nepali RMG to the US. However, as there no initiatives were taken by the government till date there is no progress on this front. With 70 per cent of Nepali RMG being exported to India, the Indian market has evolved as a fertile market but due to additional charges exporters are facing hard times.

Pokharel said that there is an additional duty charge of four per cent on garments exported to India which affects the export volume. “The Counter Valuing Duty (CVD) of four per cent is rational but we are having great problem due to additional duty charge on maximum retail price (MRP),” he added.