Nepal's garments export up by 33 pct

Export of Nepal's readymade garments to the United States recorded a strong growth of 33 percent in May, according to statistics released in Kathmandu on Tuesday.

During the month, Nepal's readymade garment exports to the U.S., which absorbs some 80 percent of total garment production of the country, soared to 5.60 million U.S. dollars, according to the statistics of Garment Association of Nepal (GAN).

In the same month last year, Nepal's garment exports to the U.S. was valued at 4.20 million dollars.

Analysis of monthly data shows continued upheaval in the export of readymade garments in 2006.

According to the statistics, the export of the readymade garments to the U.S. declined by 5 percent to 5.60 million dollars in January 2006.

In February and March, it bounced back by 47 percent and 3 percent respectively, with export growing to 6.53 million dollars and 6.41 million dollars respectively.

In April, however, it again recorded a whopping 59 percent decline. Export during the month dropped to 5.60 million dollars.

"Overall performance of the industry still remains below average," president of GAN Kiran Saakha told reporters.

GAN data shows that the country's export of readymade garments to the U.S. went down by 5 percent as compared to exports recorded during the same period of 2005 - the year when overall export plummeted by over 41 percent.

The cumulative export for the period this year is valued at 25. 72 million dollars, whereas it was 27.22 million dollars during the same period last year.

"The very fact that exports during five months of 2006 totaled to less than that of 2005 shows how deep the gloom is running in the industry," Saakha said.

According to Saakha, Nepal was tagged as one of the biggest losers of quota phase out in 2005 by the United Nations Development Program.

Nepali readymade garment industry has been going through a rough phase since 2002, when the U.S. pledged duty- and quota-free market access to Caribbean and Sub-Saharan countries eroded competitiveness of Nepali products in the international market.

While its negative impact was more than obvious, the pace of decline in exports took off after quota regime in global trading of garment expired on Dec. 31, 2004.

Entrepreneurs stated that the latest changes such as rise in cost of production in India and restrictions imposed by buying countries on massive imports from China have created new space for the Nepali garment industry.

"However, we have not been able to tap the opportunity due to investment and policy constraints," Saakha said.

He urged the government to announce trade and investment friendly policies to revive the industry.

Source: Xinhua