Also, a rise in transportation charges and strengthening of Baht will make garments imported from Thailnad expensive by around 10 to 15 percent during Dashain.
Importers said the price of readymade garments and footwear items imported from China will go up by as much as 40 percent this season. [break]
They attributed the likely rise to an increase in the prices of readymade garments and footwear in China, following the revaluation of the Chinese currency, which made it stronger than the US dollar.
“The price of readymade garments will go up in the range of 20 to 40 percent while footwear items are expected to become expensive by as much as 20 percent this festival season,” said Min Bahadur Shrestha, vice-president of Nepal Trans Himalayan Border Commerce Association, a body of traders who deal in Chinese goods.
Importers of Chinese products say the valuation of Chinese currency has been increasing at a rate of 4.5 percent every year. If this continues in the coming years, they will no more be able to do business with China because of products becoming too expensive for markets like Nepal, they fear.
“Chinese goods have become expensive by 30 to 50 percent this year as compared to the last year. In addition, China has raised the labor charges by almost double this year as compared to last year," Shrestha told Republica. If all these factors are taken into account, a large segment of Nepali consumers, who go for cheaper supplies from China, may be disappointed to find that the good old days of cheap Chinese products are over. The price of Chinese products escalated by almost 15 percent last year.
Besides, the price of cotton that hit a 15-year high recently has also become 80 percent more expensive this year as compared to the start of the last year. As a result, garments will be expensive by as much as 40 percent.
Chinese goods imported from Shanghai, Guangzhou, Chengdu and some other places are popular for their cost-effectiveness among low-income as well as middle-class consumers. But with the price hikes, this might no longer be the case.
According to the association, commodities worth Rs 2 billion are being brought into the country from China every day. There are more than 50 traders actively engaged in trade with China.
Importers also fear an the early arrival of the festival this year coupled with political and economic upheavals in the country can make the festival business a little less exciting.
“With the increase in price, people will have to heavily compromise with quality this season,” said Durga Bahadur Shrestha, founding president of Nepal Trans Himalayan Border Commerce Association.
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