Tottering Nepali RMG yet to recoup
Kathmandu, October 19
Nepali readymade garment (RMG) export has not yet revived. This September, it saw a 51 per cent fall in export to the US market compared to export then last year.
There was a 14 per cent rise this August but export dropped down by eight per cent in September. There was a 80 per cent fall in the export in 2007 in comparison to that in 2003.
Nepali RMG has been experiencing continuous fluctuation in export. Talking about the US economic recession and its impact
on Nepali export, Garment Association of Nepal (GAN) first vice-president Uday Raj Pandey said, “Economic recession in the US obviously influences the export business of Nepal as a whole but I think it would not have a long run effect. Though of course, all still depends on the recession periods.”
“As the purchasing capacity of people in the US is decreasing we will have shrinkage in the export order that mainly comes from the US and European countries,” said Pandey adding that in the world market Nepal has a small market and gets limited orders. He said,
“I think we won’t have to suffer much due to the recession in the US.”
According to data, the total value of Nepali RMG exported in September was $657,549 and $692,883 during August.
Pandey further said, “Nothing can be predicted, due to decrease in the purchasing capacity in the US, buyers there have certainly cut down on placing the orders.”
The total export of Nepali RMG products in January was worth $2.65 million; in February it was $2.014 million; $991,820 in March; $1.266 million in April; $1.109 million in May; $929,366 in June, $519,524 in July and $692,883 in August.