Export of readymade garments to the US, the largest market of Nepali readymade garments, has increased by 28 percent in the month of June as compared to same period of last year.
Garments worth US $5,563,610.14 were exported to US in the month of June as compared to US $4,359,945.01 of the same period last year.
According to garment entrepreneurs, the rise is due to recent increment of new orders from major US importers based in India.
The industry, which is on the verge of collapse following the termination of quota system to US, saw a 33 percent rise in the month of May.
The decline in exports to US in January, March and April by 8, 13 and 59 percent respectively are attributed to quota phase out and insecurity, according to exporters.
During the month of June in 2004, garment exports declined by 46 percent. However, in June 2003, garment exports to US had increased by 39 percent registering export worth US $9,651,829.93.
According to data of the Garment Association of Nepal (GAN), the volume of garment export totaled US $ 31.39 million from January to June 2006, which was a 38 percent decline compared to the same period last year.
Report quoted Uday R Pandey, general secretary of GAN, as saying exports last year was worst which registered a little improvement this year.
However, in the coming months, there is still uncertainty over the export market, a matter the government must address through the budget and correct the prevalent ills, said Pandey.
The export of garment declined sharply from 2005, following the termination of quota system to US, the largest market of Nepali readymade garment. According to GAN, over 50,000 people involved in this sector lost their jobs due to the sharp decline in exports.
Similarly, readymade garment exports to Canada in June increased by 17.34 percent exporting garments worth $92,496.95 compared to an increment of 267.05 percent last month.