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RMG exports to US witness turmoil
Mar '10
Overall readymade garment (RMG) exports of Nepal in the month of February stood at $361,918.55. These exports to the US recorded a steep fall of 60 percent against the exports in same month of last year.

However, following the waiver of four percent additional charge announced in the Indian budget, garment industries are anticipating minimum 25 percent growth in exports to India during this fiscal.

India has emerged as a huge RMG market for Nepal over past few years. Total garment exports of the country to India are increasing by up to 50 percent, whereas these exports to the US are witnessing downfall, informed Mr. Prashant Kumar Pokharel, President Garment Association of Nepal (GAN).

He added that the four percent waiver in additional charge on garment exports would definitely prove to be beneficial for Nepali RMG industry, but for the complete revitalization of the industry, it needs to take further measures.

In the year 2009, total exports of Nepali RMG to the US dropped by a whopping 90 percent compared to 2005 export data. While to India, these exports slipped sharply by 84 percent in the initial five months of this fiscal.

Mr. Pokharel further said that presently only 20-25 small and just five big industries are operational in the country. The plan of setting up a Garment Processing Zone in the Export Promotion Zone is still hovering uncertainly over past seven years. The industry is also suffering from lack of security and labour flexibility, he added.

Fibre2fashion News Desk - India

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