Bharat Apparel - Apparel Portal

NEPAL: Continuous decline in garment exports to the US

US is the single largest market for Readymade garments. This is the fifth month of continuous decline. The Garment exports to US have seen a whopping decline every month, starting from January this year. January 54%, February 64%, March 47% and April saw 3% reduction in reduction figures. The Nepali textile and apparel products are finding it difficult to maintain the figures after end of the Quota regime.

For the last two years the industry is loosing business due to various reasons like single market concentration, but the termination of quota regime under multi-fibre agreement (MFA) in January has started the slide much faster.

The US absorbs 80% of the total Nepali garment exports.

The garments and apparel products exported to the US in May 2007 were $2.25 million against $5.60 in may last year.

Garment Association of Nepal (GAN) says the continuous fall in exports indicates a difficult time ahead for the Nepali garment manufacturers and exporters, as the markets have already been opened for all the competitors without quota restrictions.

There is a need to enhance competitive strength of the Nepali products should be increased in order to compete with India and China and there is a need to look for markets other than the US.

Source: Agencies • News Courtesy: BharatTextile.com