Lack of security and policy support has pushed the cotton towel industry, a complete export- oriented industry, towards near collapse in Nepal, an operator said in Kathmandu Thursday.

"Of the total 53 cotton towel manufacturing companies in the country, 52 have already shut down operations," Deepak Sapkota, managing director of Dynamic Towel Industry (DTI), told reporters.

DTI based in Gaindakot town of western Nawalparasi district is the only industry that is in operation at present which is also barely managing to sustain itself.

The cotton towel industry had once an investment of over 2 billion Nepali rupees (28.57 million U.S. dollars) and employed over 27,000 persons. "When all 53 companies were in operation, export of cotton towels amounted to as much as 10 million U.S. dollars," Sapkota said.

Nowadays, only 500 people are employed in the sector and its export has also plunged to 1.5 million U.S. dollars, according to Nepal Cotton Towel Manufacturers' Association, a non-government organization.

Internal conflict and apathetic attitude shown by the government were major factors behind the downfall of the industry, Sapkota noted.

"The very imposition of additional 20 percent customs duty on import of raw materials in the latest financial ordinance on Nepal shows the government's attitude towards the industry," Sapkota said.

The imposition has completely blocked the chances of reopening of the closed industries as the they relies on imported equipment, machinery, dye, chemicals and other raw materials mainly sourced from India and Pakistan, he added.

Source: Xinhua