Export of readymade garment declines

September 5, 2006
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The export of readymade garments to the US, one of the major market of Nepali readymade garment continued to dwindle posting seven percent decline in August, compared to same period of the last year.

Readymade garment worth $ 2.49 million was exported to US in August 2006 as compared to $ 2.70 million in the same month of the last year.

According to the Garment Association Nepal (GAN), readymade garments worth $2.49 million were exported in August. Only 7,633 kg of readymade garments were exported during the last month.

Iin the month of July, 16,951.50 kg of readymade garments were exported worth $3,902,879.48, also a decline by 17 percent compared to an increment in export by 28 percent in June 2006 worth $5,563,610.14, said GAN.

In the month of May, readymade garment exports increased by 33 percent, while in April 2006, it had declined by 59 percent.

Nepali garment export has been going through a downward spiral since US pledged duty and quota-free facility to Sub-Saharan African and Caribbean countries.

The government, even during the visit of senior US officials to Nepal, did not take up the issue of the bill pending in the US congress for duty-free access for Nepali readymade garments, complained officials at the GAN. According to them if the bill was passed, it will give some relief to the ailing garment industries of the country.

In the month of August 2005, readymade garment export declined by only one percent and export was worth $9,470,719.22, as per the statistics produced by GAN.

Similarly, export of readymade garments to Canada declined by over 52 percent, worth $73,607.92, whereas in the month of July, readymade garments worth $88,810 were exported.