Garment manufacturers in Nepal have urged the government to give export incentives to boost business of Nepali apparels. This could be done through a supplementary budget, they say. Nepali garments are up to 18 per cent more expensive in the international market compared to garments from other countries, local apparel manufacturers have demanded the government should provide 10 per cent export incentive on total export value, which according to them, is a must to bring down their cost of production.
Citing the example of garment industry in Bangladesh, manufacturers say Bangladesh has progressed in garments as the government has given 10 per cent export incentive to local apparel manufacturers. Nepal and Bangladesh both started garment exports in the 80s. While Bangladesh progressed and the exports market is worth Rs 28 billion annually, Nepal is lagging behind and its garment exports is worth only Rs 5 billion every year.
Manufacturers say Nepali garments have high demand in the European Union, United States and India. Officials of Garment Association of Nepal (GAN) also stated that implementation of ‘No Work, No Pay’ provision introduced by the Industrial Enterprise Act is crucial to bring down production cost in Nepali garment industry.