Export of Nepali readymade garments to the USA has declined by 60.45 percent in February due to low confidence among buyers and exporters on timely delivery.
In February 2010, Nepal exported readymade garment worth US$. 361,916.55 against the export worth US$. 915,275.61 of the same month last year.
"The export is declining because of low demand from the USA," said Uday Raj Pandey, vice president of Garment Association of Nepal (GAN). "Even though we get orders there is no capacity to produce and deliver the products on time."
According to the GAN, there used to be over 300 garment industries in Nepal five years back and the USA used to be the major buyer of Nepali readymade garments.
But now only a dozen of them are being operated with low orders in recent time after the removal of the quota system by the US.
"There are enquires from buyers but we are not able to accept orders, even if we get some orders, the problems like load-shedding, protest, strikes and labour unrest etc have made production difficult." said Pandey.
According to the GAN, the recent removal of the four percent countervailing duty (CVD) for Nepali readymade garment exporters by India has provided new hopes when readymade garment exports to India had declining.