Il­le­gally im­ported cloth dom­i­nates Nepal’s mar­ket

People's Review - - NEWS - By Our Re­porter

A bizarre fact has been re­vealed about cloth be­ing used by Nepalis. Ac­cord­ing to a new re­port pub­lished by The Ris­ing Nepal, 80 per cent cloth in Nepal is brought il­le­gally, which has not only af­fected do­mes­tic tex­tile in­dus­tries but also the gov­ern­ment rev­enues. Ev­ery year about 800 mil­lion me­tres cloth are im­ported il­le­gally from China and In­dia into Nepal, which has had a mul­ti­tude of neg­a­tive im­pacts on the do­mes­tic tex­tile in­dus­try, em­ploy­ment and rev­enue, ac­cord­ing to a re­cent es­ti­mate of the Nepal Tex­tile As­so­ci­a­tion (NTA). The coun­try needs about 1bil­lion me­tres of cloth for body wear and other com­mer­cial pur­poses. About 80 per cent is used to make clothes while the rest is used to cre­ate com­mer­cial prod­ucts like cur­tains, cush­ions, bags and other items. And 80 per cent of the to­tal re­quire­ment of the coun­try is met through the il­le­gally im­ported cloth. Of the to­tal cloth re­quire­ment, about 70 mil­lion me­tres are pro­duced in Nepal, and about 130 mil­lion me­tres are im­ported via var­i­ous cus­toms points. It shows that only 200 mil­lion me­tres of cloth are legally pro­duced or im­ported in Nepal. A re­port pre­pared by the as­so­ci­a­tion men­tions that the per capita cloth de­mand per an­num is about 30 me­tres. The il­le­gally im­ported cloth has snatched away thou­sands of jobs, a large mar­ket share and bil­lions of ru­pees in rev­enue. Ac­cord­ing to a re­port sub­mit­ted to the World Trade Or­gan­i­sa­tion (WTO) and pre­pared by the Min­istry of In­dus­try, com­merce and Sup­plies, United Na­tions De­vel­op­ment Fund and United Na­tions Con­fer­ence on Trade and De­vel­op­ment (UNCTAD) in 2002, the tex­tile in­dus­try in Nepal faced prob­lems due to cheap smug­gled fab­rics mainly from Ti­bet/China. Pro­duc­tion of tex­tiles in FY 2000/2001 was 20 mil­lion me­tres, enough to meet only 5.7 per cent of do­mes­tic de­mand, and the coun­try im­ported about 47.6 mil­lion me­tres, 13.6 per cent of the de­mand.

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