Home / Knowledge / News / Apparel/Garments / Nepal's 1st garment processing zone to be complete by Apr

Nepal's 1st garment processing zone to be complete by Apr

25
Feb '19
Pic: David Bartus from Pexels
Pic: David Bartus from Pexels
Nepal’s first garment processing zone in Bara district’s Simara is likely to be completed by April. The Rs 2.5-billion facility will facilitate export of Nepalese readymade garments (RMG) and minimise production costs, enabling those to compete in the international market, according to the Garment Association of Nepal. There are 52 RMG units in the country.

The garment processing zone, whose construction started in January last year, is expected to compensate high transport and shipment costs due to Nepal's landlocked status as the zone is located near the country's only rail-linked dry port in Birgunj.

The garment processing zone concept gained traction after the United States extended zero tariff preference for 66 products, including apparels, into its market through Trade Facilitation and Trade Enforcement Act.

The price of Nepali RMG rises 15-20 per cent when those reach global markets, said association president Chandi Prasad Aryal.

The government’s a 3-per cent cash incentive to RMG exporters is not sufficient to make Nepalese products competitive in the global markets, a report in a Kathmandu daily quoted Aryal as saying.

The production costs of Nepali readymade garments are high due to the high cost of raw materials, imported mainly from India and China, he said.

According to Nepal Rastra Bank, the country exported readymade garments worth Rs 2.27 billion in the first six months of the current fiscal year, against Rs 2.29 billion in the same period in the last fiscal year. Nepal’s garment exports totalled Rs 5.9 billion in the last fiscal year.

Aryal said Nepal’s RMG industry collapsed after the expiry of the Multi Fibre Agreement in January 2005, which provided duty-free access for Nepali garments to the United States. More than 85 per cent of the RMG factories shut down after that. (DS)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

E-commerce | On 10th Jul 2020

Commonwealth, ILO join partnership for inclusive e-com

The global 'eTrade for All' initiative, which aims at making digital...

Pic: Shutterstock

Apparel/Garments | On 10th Jul 2020

Turkish H1 mask, protective clothing exports hit $573 mn

Turkey's protective clothing and mask exports hit $573.4 million in...

Pic: Bed Bath & Beyond

Retail | On 10th Jul 2020

Bed Bath & Beyond plans to shut 200 stores in two years

Bed Bath & Beyond, a US-based omnichannel retailer, has announced...

Interviews View All

C. Dhandayuthapani, Mag Solvics Pvt. Ltd

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Siddharth Biyani, Mangalam Industries Pvt Ltd

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Footwear industry, Head honchos

Footwear industry
Head honchos

There is rising demand for fancy, trendy and yet comfortable footwear

Jason Remnant,

Jason Remnant

<div>Xaar plc develops digital inkjet technology; it designs and...

Tom Adeyoola,

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Manoj Sorathiya,

Manoj Sorathiya

Surat-based Sunrise Imports &amp; Exports Co is a manufacturer and...

Justin Gutierrez, INDA

Justin Gutierrez
INDA

The Association of the Nonwoven Fabrics Industry (INDA) has created a new...

Ayyappa Nagubandi, Broadcast Wearables Pvt Ltd

Ayyappa Nagubandi
Broadcast Wearables Pvt Ltd

Hyderabad-based Broadcast Wearables has come up with the country's first...

Matthew Kolmes, Supreme Corporation

Matthew Kolmes
Supreme Corporation

Supreme Corporation manufactures innovative specialty yarns and safety...

Robert Brunner, Devereux

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Anisha Chaudhari, Threads & Shirts

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Igor Chapurin, Chapurin

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

Leave your Comments


July 2020

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


Advanced Search