Home / Knowledge / News / Textiles / Nepal jute mills demand incentives
Nepal jute mills demand incentives
16
Jun '11
The Nepal Government has been called upon by nine jute mills belonging to Morang-Sunsari Industrial Corridor (MSIC) to sanction a 10 percent cash incentive to boost export of jute items. The mills have also submitted a five-point demand for revival of the ailing mills.

Nepal Jute Industries Association (NJIA), during a recent press meet in Biratnagar, had also cautioned that if the Government does not pay heed to their demands, all the mills would be forced to close down.

The NJIA revealed that NPR 80 million has been invested in the nine mills in MSIC which employ over 10,000 workers.

The Government's indifference towards their demands was greatly lamented by the NJIA, which held that the industry is experiencing severe problems due to extended power outages, and higher wage rates as compared to the wages prevailing in countries like India and Bangladesh.

The Association has put forth a demand before the Government to grant a 70 percent subsidy in electricity rates and 10 percent incentive on export of jute items.

The Association also urged the Government to extend VAT and custom duty exemption on import of spare parts, and also to make provision for providing diesel to the industry at subsidised rates. It even asked the Government to constitute a Jute Board to promote and boost jute cultivation.

The NJIA stated that the Biratnagar mills are not in a condition to withstand the competition from Indian and Bangladeshi jute industries. The Government's move of hiking the minimum daily wage of workers to NPR 231 from the month of May has intensified the woes of the domestic jute mills.

According to Champalal Rathi, a jute entrepreneur, it is not possible for the Nepali jute mills to withstand competition from jute mills in Bangladesh and India, as mills there draw several subsidies from the Government.

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 18th Jan 2017

Government considering 100% FDI in single brand retail

The Government of India is looking at allowing 100 per cent foreign...

Courtesy: Walmart

Apparel/Garments | On 18th Jan 2017

Walmart to create 34,000 new jobs in the US

The world’s biggest retailer and also the biggest US private sector...

Courtesy: UN Department of Public Information

Textiles | On 18th Jan 2017

World economy expanded by just 2.2% in 2016: UN

The world economy expanded by just 2.2 per cent in 2016, the slowest...

Interviews View All

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search