Total export of readymade garments went up by 17.8 per cent in the first two months of the current fiscal year, largely due to depreciation of Nepali currency.

Nepal exported garments worth Rs 786.2 million in between mid-July and mid-September this fiscal as against Rs 667.4 million in the same period a year ago, the latest statistics of Nepal Rastra Bank shows.

“The export figure might have gone up during the two-month period due to depreciation of Nepali rupee, as sellers here received more of Nepali currency while exchanging the US dollar provided by international buyers,” the Garment Association - Nepal (GAN) said.

Of the total garments exported so far this fiscal, Rs 55.1 million worth of goods was bought by India and the rest went to other countries around the world.

In the same period last fiscal, India imported Rs 35.2 million worth of garments from Nepal, while Rs 632.2 million worth of garments was bought by other countries.

These figures show that export of Nepali garment to India went up by over 50 per cent in the first two months of the current fiscal, providing some relief to garment exporters.

Earlier, Nepali garment exporters had called India as the ‘destination next’ for garment exports due to surge in demand for Nepali products in the southern neighbour. But those dreams of selling more garments in India were shattered after export to India plunged by 73.8 per cent in the first two months of last fiscal.

Garment exporters said official figures show decline in export of garment as many are sending these products through illegal channels to avoid non-tariff barriers. “Because of this, the country has not been able to maintain accurate export figures,” they said.

The GAN also said there is good demand for Nepali garments in India but the export figures do not corroborate it.

Previously, the US used to be the biggest importer of Nepali garments. But things changed after the US put an end to duty free access for garment and textile products.

Considering the need to revive the declining export of Nepali readymade garments to the US and to address the issues raised by the Nepali garment exporters, the government has requested the US to include Nepali garments while revising General System of Preference (GSP) facility this year. The Ministry of Commerce and Supplies also has plans to enlist Nepali garments in the Nepal Trade Integration Strategy 2010 priority product list.