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Nepal garment exports to grow 10% in 2012 - GAN
05
Jan '12
After witnessing an increase of about 4-5 percent in garment exports in 2011, the Garment Association of Nepal (GAN) is now expecting the country's apparel exports to rise by 10 percent in 2012.

Mr. Uday Raj Pandey, President of GAN, told fibre2fashion, “Last year, Nepal exported around NPR 5 billion worth of garments, of which more than 50 percent were destined to the EU with the remaining meant for the US, India and other countries.”

Explaining the export scenario, he says, “During the last two years, there has been a decline in export growth rate, but exports have not declined. While our garment exports to EU are increasing, those to the US market are declining.”

Mr. Yagya Pokharel, Proprietor of United Fashion, approves, “The garment exports to the US are decreasing continuously due to uncertainties in the quota system. But, we continue to get small-scale orders from our European customers.”

Talking about exports in 2012, Mr. Pandey says, “Since the past two years, garment exports from Nepal have increased at around 5-6 percent. We are not expecting much increase this year, but we expect exports to increase by about 10 percent.”

“We expect political stability to return in Nepal after six months, which might enable the factory owners to take bulk orders. Currently, even the buyers are not ready to palce bulk orders because since five years they have had bad experiences in Nepal. However, since the last two years there has not been any major strike in Nepal and this is one of the reasons for our expectation of rise in exports,” he reasons.

“Secondly, in November-December 2011, we participated in a sourcing fair in Australia. So, we expect Australia to explore the garment industry in Nepal in 2012. Hopefully, we will have some orders from Australia this year. It is one of the new markets that we are trying to strengthen and if we get good break in this market, it would boost our exports,” the GAN President adds.

Fibre2fashion News Desk - India

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