According to fresh data released by Nepal Rastra Bank (NRB), the central bank, exports of RMGs, pashmina, and carpets to overseas countries posted double-digit decline during the review period. Even the imports of RMGs from both India and third countries dropped during the period.
Nepal exported RMG to third countries (other than India) worth Rs 2.5 billion over the first 10 months of 2012/13, down by a whopping 27.9 percent compared to the figures recorded during the same period last year.
Export of pashmina products to overseas countries also tumbled by a staggering 51 percent to Rs 1.26 billion. Country´s pashmina exports have been suffering even though the government registered ´Chyangra Pashmina´ trademark about three years ago, giving Nepali pashmina products a recognition in the international market.
Pashmina entrepreneurs have been complaining that lack of promotional budget to reach out to new destination and promote it in existing market has been hampering export of these products in the past few years.
Similarly, country´s carpet export to third countries dropped by 12.9 percent to Rs 4.95 billion during the review period compared to same figures of the same period last year.
European countries and the US are the major buyers of Nepali RMGs, pashmina and carpets.
Nepal´s RMG export has been dwindling ever since the duty-free-quota-free facility provided by the US government ended in 2005.
Nepali traders were hopeful that RMG export will rebound after Nepal and the US signed Trade and Investment Framework Agreement (TIFA) in April, 2010. However, it hasn´t happened so far.
Similarly, exports of RMGs to India plunged by 63.7 percent to touch Rs 138 million during the review period compared to the figure of same period last year. Rising flow of cheaper Bangladeshi RMGs and additional duty being imposed by India have made Nepali RMGs dearer in India. However, exports of pashmina products to India increased by 27.3 percent to Rs 41.7 million during the period.
Likewise, import of RMGs from India and overseas countries also declined during the review period. NRB´s data also shows that Nepal imported RMGs worth Rs 2.47 billion from India in the review period, down by 9 percent compared to the amount recorded during the same period in the last fiscal year. Similarly, RMG import from third countries, mainly from China, also decreased by 27.9 percent to Rs 2.5 billion.
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