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  News Clippings

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Tobacco giant enters domestic garment market, KATHMANDU, November 8, 2004

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Garment exports to US up 30% ,KATHMANDU, November 8, 2004

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Garment exports to US drop by 26%, KATHMANDU, September 8, 2004

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Garment exports continue to decline , KATHMANDU, July 5, 2004

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Handicraft exports slightly up, KATHMANDU, August 18, 2004

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IRD postpones duty sticker deadline, KATHMANDU, August 16, 2004

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Net export policy hits leather firms, BIRGUNJ, August 8, 2004

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Towel industry on verge of collapse, KATHMANDU, August 7, 2004

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Tobacco giant enters domestic garment market
KATHMANDU, November 8

Surya Nepal (SN), country’s tobacco giant, has taken a new turning diversifying its long-dominated tobacco business, by bringing John Player, a world-class brand in ready-made garments, in the domestic market.

Using world-class brand name like Johan Player (JP), SN aims to capture a significant proportion of the relevant market size, which amounts to over 40% of the monthly demand of ready-made garment sector, within a year. The target audiences of JP are the quality conscious and fashion forward male consumers of branded ready-to-wear apparel in the local market. SN has selected leading departmental stores as well as shopping outlet to sell its JP products.

Garment exports to US up 30%
KATHMANDU, November 8

After posting a downfall in export for nine straight months Nepali readymade garments, in October, recorded 30% rise in its export to the US, the largest market that absorbs some 80% of the products.

This is the first time the garment export saw an upward growth in 2004. But entrepreneurs say that the rise in the export was merely a seasonal impact. The export growth may no long last. According to them the industry will survive only when the US provides Nepal the duty and quota free market access. The threat is more eminent as multi-Fiber Arrangement is phasing out from 2005.

To sustain the industry, in the new trading regime, the GAN and the government joined hands for a couple of occasion this year to lobby for the duty- and quota-free market access to the US, but failed to obtain specific commitment from the US government.

Moreover, Nepali readymade garment has been failing to make impressive presence in the European market as well, despite the derogation facility it has been providing to the Nepali garment export. Readymade garment export to Canada, increased by over 102 % in October. But the Canadian market is too negligible to make a significant impact in the overall export scenario of the product.

Jute export resumes
KATHMANDU, November 2

Local exporters have resumed export of their products to India, after Indian government’s decision to lift quarantine fee on the import of Nepali jute goods.

Garment exports to US drop by 26%
KATHMANDU, September 8

Readymade garment exports to the United States in August 2004 has dropped by 26%, compared to the corresponding period last year.

Garment exports to Canada, though it consumes only a small fraction of the total exports, continued to register a growth for the seventh consecutive month. However, the growth registered is not big as it was on previous months. Garments exports to EU declined by 47.13% during the month against exports to August 2003.

The fall in exports is mainly due to deteriorating law and order situation in the country. Major importers of Nepali garments are very worried over the security situation here. Frequent bandhs and other political activities have impeded shipment schedules, which is diverting buyers to other garment manufacturing countries. Tough days are ahead for Nepali garment exports to the US, as the multi-fibre arrangement (MFA) will be phased out from January 1, 2005. It means Nepali exports have to face cutthroat competition in the international market, as they will lose duty and quota-free access to the US. Industry insiders underline the need for diversifying garment and apparel markets to sustain the domestic industries.

US likely to extend textile quota
KATHMANDU, August 25

According to a World Textile Publications Ltd (WRPL) new posted on its website, the United States of America and China have reached some sort of an understanding that all existing US quota for textile /apparel imports will continue for a further five year period, quota extension for least developed countries including Nepal , is also likely to happen for the same period.

If quota extends then other countries including Nepal, are also likely to continue to enjoy quota facilities well after 2004.
However, US has been silent on the quota deal with China. WTO chief has also called a meeting on October 1 to discuss textile quota after tremendous pressure from Global Alliance for Fair Textile Trade (GAFTT), and alliance of 49 nations, requested US government for quota extension. It is understood that a total of 117 US senators and congressmen have already requested US president George Bush to fulfill the demand GAFTT for textile quota extension. This has increased the hope for textile quota extension, opined readymade garment exporters.

Handicraft exports slightly up
KATHMANDU, August 18

Despite the bleak economic scenario in the country, handicraft exports recorded a marginal growth of 0.74 % in the fiscal year 2003/04.However if compared to the exports of 1999/2000, have declied by 64%.

Exports of pashmina products worth Rs 661.4 million were exported in the year 2003/04 against Rs 989.9 million in 2002/03.

Export of
Wooden goods
Wooden crafts
Silver jewelry
Handmade paper products
Metal craft
Silk products
Cotton products
Hemp
Aalloo goods
Incense
Tea
Leather goods
Thanka and pauwa
Ceramic products
Bone and horn products
Bead items

Growth
56%
24%
4%
10%
6%
219%
18%
4%
25%
11%
146%
-5%
-5%
-7%
-13%
-15%

Net export policy hits leather firms
BIRGUNJ, August 8

Leather export permit is likely to come to a halt after leather industries, already hit by shortage of raw skin and tough competition in the international market, could not export their products in accordance with the revised policy. Since these export 30% of tanned skin or leather goods as required by the revised policy in the last fiscal year, such possibility of control over exports has come up.

Most of the leather industries in Nepal, export wet blue leather on a large scale as the leather on a large scale as the leather tanning cost in Nepal, as compared to other Asian nations, is higher.

President of the leather industries association, Sanjaya Giri told the government should revise the leather export policy. In the present state of conflict, due to shortage of raw skin and price competition with foreigners, native industries are not in apposition to export in accordance with the set standard. Even at the time of its shortage , is exported illegally to India and Tibet.

The industry has not been able to utilize its full capacity for the last years due to the shortage of raw skin. The international leather market saw decline in its trade after September11 attacks in the United States and though there was a recovery last year exports failed to pick up as compared to demand. As supply from mountainous leather skin, was not sufficient, leather industries could not produce enough.

Towel industry on verge of collapse
KATHMANDU, August 7

At a program organized by the Nepal Cotton Towel Enterprises’ Association (NCTEA), towel industrialists stressed the need to safeguard the towel manufacturing industry, a significant earner of foreign exchange.

The industry started to export towels in 1994 an that by the end of 2000 the number of towel factories had risen by 48. Only seven factories are running today. These operate at just 20% of capacity. In 2003 the country gained US $4 million through the export of towels. Till July, 2004, they have made US $ 1.9 million.

The industry started to sicken with the dramatic rise in domestic and international political interference that followed the attacks of September 11. Not only has the situation hampered the industry, it has also severely disrupted employment. About 7,240 people are directly employed by the industry. However , 15,000 are indirectly dependent on it.

The NCTEA has submitted a memorandum to the government listing its demands and suggestions. The memorandum includes demands for employee access to banking facilities, for management of capital for the renewal process and for temporary exemption from the black list, among others.

‘Import export infrastructure’
KATHMANDU, July 29

Experts stress the need to improve standards of cargo managements and to enact the Multi-Modal Transportation Act to boost exports. They say that exports through TIA declined by 45% between 1999 and 2003.

The Nepal Freight Forwarders’ Association (NEFFA) organized a program to celebrate its 10th Nepal Cargo Day. At the program, Namgyal Lama, President of the NEFFA, highlighted the poor condition of the cargo Complex at Tribhuvan International Airport (TIA). He said that the government should now work to develop an adequate export infrastructure..

Vinod Kumar Chaudhary, an expert from India, stated that freight-forwarding businesses, in Nepal as well as India, should be prioritized by the respective governments to help them to compete with multinational companies.

Garment exports continue to decline
KATHMANDU, July 5

Exports of readymade garments to the United States, which make up over 80% of Nepali garment exports, declined by about 30% in the first six months of 2004.

Garment exports to US during the period stood at US$ 52.71 million according to Garment Association of Nepal (GAN) figures. Exports during the same period last year were valued at US$ 75.25 million

The GAN’s monthly export statistics show that exports of readymade garments, the largest foreign currency earning exportable commodity , to the US have been sliding for the past seven months. In June alone exports declined by 46% and stood at a mere US $ 5.16 million.

Despite the decline in exports to the US, exports to the EU recorded significant growth of about 67% over the last six months. Exports to the EU stood at US$ 12.19 million over the period, up from US$7.3 million over the same period last year. The monthly exports growth for June, however, was just 0.41%.

Readymade garment exports to Canada soared by over 249% in June 2004. However, Canada is too small a market for the return to make any significant contribution to overall export revenue. According to GAN figures, garment exports to Canada in June were valued at US $ 0.23 million, while they totaled US$ 0.065 million during the same month last year.

Entrepreneurs attribute the continuous decline in competitiveness of Nepali garments to the duty and quota-free market access to the Us enjoyed by sub- Saharan and Caribbean countries.

They charge the government with laxness in lobbying for duty and quota-free market access to the US and lament that the duty preferential enjoyed by sub-Saharan an Caribbean countries has been diverting orders from Nepal.

The garment industry in Nepal is entirely export-oriented and accounts for 40% of foreign exchange earnings. It employs over 100,000 workers, of which half of them women and sustains the livelihood of over 350,000 people.

Nepali team in Tibetan carpet expo
KATHMANDU, June 7

A 27 member delegation, representing 14 carpet industries left for China to participat in the Qinghan Tibetan Carpet Exhibition, organized by the Xining Chamber of Commerce where Nepali woolen carpets will also be displayed at the exhibition. More than 500 carpet exporters from 40 countries are expected to display carpets and to exchange information. The carpet exhibition is treated as a unique opportunity to promote Nepali carpets abroad. The delegation will also visit Tibet and will discuss matters relating to the purchase of Tibetan wool with exporters, adds the release. The delegation will also hold talks with officials of the Chinese ministry of Commerce on how to simplify the export of raw wool to Nepal