February 28: There has been an increase in export of readymade garments from Nepal in the first seven months of the current fiscal year (FY 2022/23).

According to the Center for Trade and Export Promotion, the export of readymade garments increased by Rs 510 million during this period compared to the previous year.

From mid-July to mid-January of last fiscal year (FY 2021/22), a total of 6.88 million units of readymade garments worth Rs 4.3 billion were exported from Nepal. In the same period of the current fiscal year, the export value of readymade garments has increased to Rs 4.81 billion. During this period, 7.58 million units of clothing have been exported.

Data shows that most of the readymade garments produced in Nepal are exported to 12 countries in the world. In the first seven months of this year, clothes worth Rs 1.9 billion were exported to the United States of America, Rs 790 million to Britain, Rs 520 million to Germany, Rs 320 million to France and Rs 310 million to Japan.

Similarly, readymade garment worth Rs 240 million were exported to the Netherlands, Rs 180 million to Italy, Rs 170 million to Australia, Rs 150 million to Canada, and Rs 130 million to India.

Likewise, readymade garments worth Rs 130 million and Rs 100 million were exported to Denmark and Austria, respectively. Apart from these countries, Nepal also exported readymade garments worth Rs 690 million to other countries.

According to Pashupati Dev Pandey, chairman of Nepal Readymade Garments Association, despite the increase in the export of readymade garments, the situation is not satisfactory.

"We should have further increased exports, but that has not happened. The government has a lot of work to do in this sector to increase exports. The main thing is that the state organs should be export friendly," he said.

According to Pandey, the interest rate is high. The prices of raw materials have gone up, workers are abandoning this sector. Overall, there is no working environment, added Pandey.

Businessmen involved in readymade garment industry complain that textiles and garments, which are viewed in the same way around the world, are viewed differently in Nepal. They say that the government has not given all the facilities to the garment industry that it has given to the textile industry.

Bhim Giri, general secretary of Nepal Readymade Garment Association, says that the government should give more concessions to businessmen and also increase coordination and cooperation.

“Businessmen need refinancing facility. A little was received right after the onset of coronavirus pandemic. It has not happened since then. The government should make necessary arrangement for refinancing. Similarly, it is necessary for the government to make arrangements for yarn production in the country,” he said.

According to General Secretary Giri, there is a need to increase the number of industries as there is a good response and more orders coming from the foreign market for readymade garments produced in Nepal. According to him, the government and the private sector should move forward hand-in-hand.