Home / Knowledge / News / Textiles / Nepal jute mills demand incentives
Nepal jute mills demand incentives
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

Textiles | On 24th Oct 2016

Baba Ramdev’s Patanjali to enter textile manufacturing

Patanjali Ayurved, an enterprise initiated by yoga guru Baba Ramdev,...

Textiles | On 24th Oct 2016

German technology to help in energy saving in textiles

German technology can play a major role making the environment...

Courtesy: Trupik

Apparel/Garments | On 24th Oct 2016

Virtual 3D fitting rooms revolutionising online shopping

Virtual fitting rooms meant to bridge the gap between e-commerce...

Interviews View All

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Nuno Venda

‘There has been an increase in demand for water based inks, rather than...

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Yash P. Kotak
Bombay Hemp Company

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

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

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


Browse Our Archives


Advanced Search