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Garment exporters optimistic of revival
Aug '09
Nepali garment manufacturers are receiving international inquires and orders for their products as the economic slump in US and the EU markets is slowing down gradually, informed President, Garment Association of Nepal (GAN), Mr. Prashant Pokhrel.

Receiving garment inquiries from the US markets is a sign of improvement for Nepal's garment industry since it is the largest market for Nepali garments. The manufacturers have started receiving inquires from India too.

Sudden increase in inquires is due to the shrinking mode of recession and the tabling of a bill at the US Senate to allow preferential entry for Nepali garments, said garment manufacturers.

Though garment producers in Nepal are witnessing surge in inquiries the manufacturers here are not much excited, as the inquires need to be conformed first and seen if it can be fulfilled in the stipulated time, said the GAN President.

The manufacturers and buyers are still not closing orders, as the importers are still hesitant to place orders and the manufacturers are not confident, due to the political situation in the country, said a GAN official.

The country is receiving more inquiries than orders for its garments, and the orders, which it has received, are not enough to keep the factories running for the whole year, said the official.

Just seven or eight garment factories are working now and if bulk orders are received from international markets, 36 more garment factories can be reopened at short notice, say garment manufacturers.

In the first seven months of the ongoing year, there was a plunge of 56 percent in garment export to the US. During this period Nepal exported US $4.1 million worth of RMGs against its shipment of $9.4 million during the same period last year.

However, the industry experienced an 8 percent increase in exports in July after a fall for eight consecutive months, revealed the latest statistics of GAN.

The garment manufacturers are expecting growth in garment exports to India, if it removes the 4 percent additional special duty, if the talks held by Prime Minister, Mr. Madhav Kumar Nepal during his recent visit to India are successful.

Mr. Pokhrel informed that India has come up as one of the largest garment exporting country for Nepal since past three years. Nepal exports garments to India, almost similar to those dispatched to the US and have exported Rs. 667.6 million of clothing in last fiscal as compared to Rs. 478.1 million during 2007-08.

Fibre2fashion News Desk - India

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