During the review period this year, Nepal exported a total of 11.78 million units of RMGs, up by 15 percent compared to last year. [break]
The US maintained its position as the largest single country to buy Nepali RMGs followed by the UK and France as the second and third largest country respectively.
Trade and Export Promotion Center (TEPC) stated that the US imported 2.86 million units RMGs worth Rs 830 million, the UK 1.04 units worth Rs 488.75 million and France 1.25 million units worth Rs 442.9 million during the period.
Similarly, Germany bought 1.11 million units worth Rs 416.07 million, India 653,711 units worth Rs 324. 27 million and Japan 1.18 million units worth Rs 184.62 million units.
Exporters said the overall quantity of RMGs exported to overseas market decreased due to higher cost of production.
“We saw at least 15 percent rise in the cost of production and wer were compelled to jack of price of our products. This dragged down demands from buyers facing prolonged financial crisis,” said Yagya Pokhrel who has been exporting RMGs to mainly European and US market.
Another reason for higher price of exportable items are increasing demands for high-end products in the US market compared to previous years. Nepal has been exporting RMGs such as trousers, T-shirts and half-pants, among others.
Pokhrel, the proprietor of United Fashion, also said higher pricing of RMGs also discouraged US customers who are more price conscious compared to European clients. “We are facing difficulties in convincing US buyers who are getting same quality products from South American exporters,” said Pokhrel.
Sanjaya Agrawal, another RMG producer and exporter said despite economic slowdown, exports to Europe was gradually picking up as buyers were ready to buy even small quantity of RMGs unlike US buyers who prefer bulk purchase. According to Agrawal, European buyers prefer to buy boutique items, ladies dress, jacket and other high end products.
“Nepali RMG products are enjoying General System of Preference (GSP) for duty free access to Europe. However, US market is becoming more competitive with the entrance of many suppliers that are competing to sell products at cheaper price,” said Agrawal, promoter of Heritage Garment that supplies RMGs to India, the US and European market.
Bangladesh, Sri Lanka, Vietnam, Combodia and South American countries are the major competitors of Nepal in the US market, which is largest market for global apparels. Frequent bandas, long hours of power cuts, higher transportation cost and increasing price of raw material in the market have been pushing up the price of exportable RMGs eroding the competitiveness of Nepali products in the global markets.
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