Nepal’s Garment Industry in Trouble

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Nepal’s Garment Industry in Trouble

December 7: The condition of Nepal’s garment industry, which has been affected severely by the Covid-19 pandemic for a long time, has not improved yet. The impact of the pandemic has reduced the production capacity of the garment industry and there have been no signs of improvement in problems faced during export.

Earlier, when the government restricted international flights to reduce the impact of coronavrius, garment manufacturers and businessmen were exporting goods even though they had to pay four times more transportation fare. Entrepreneurs say they are still suffering because the situation has not improved.

Entrepreneurs who exported clothes at high fares for the winter season in September and October were hoping of a reduction in fares while bringing clothes for the summer. However, the problem remains the same. The garment industry is currently producing and exporting clothes for the summer season.

Ashok Agrawal, general secretary of the Garment Association of Nepal, said that the entrepreneurs are facing many problems in export due to high transportation charge. Under normal circumstances, exporters used to export garments by sea through the Kolkata port of India.

However, border tightening due to the coronavirus pandemic has been in force for a long time. Due to this, goods could not be sent via the sea route.

The businessmen say that even though there is not much hassles at the border for import, there is problem in exporting goods.

Therefore, businessmen are forced to export goods via courier these days. "There has been no change in the previous fares and the sea routes have not been opened. We cannot predict for how long this business will have to face such a situation," Agrawal said.

 

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