Nepal RMG sector faces order cancellations
worth Rs. 1.25 billion by global buyers
In what may be termed a major blow to the readymade garment
manufacturing sector of Nepal, orders equivalent to 28 per
cent of the country’s total apparel export in the first 11
months of financial year 2019-20, which ended in middle of
July, have either been held up or cancelled, thanks to
COVID-19, claimed media reports.
According to the Garment Association of Nepal, orders worth
Rs. 1.25 billion have been cancelled or put on hold by the
global buyers on account of the coronavirus pandemic.
Further, according to the President of Nepal Garment
Association, Chandi Prasad Aryal, the country had to face
major obstacles both in importing raw materials and
exporting the ready products due to border restrictions, in
many countries including Nepal, which halted all traffic
According to media reports, in the first 11 months of
financial year 2019-20, Nepal exported apparel products
worth Rs. 4.54 billion, which in the corresponding period of
fiscal year 2018-19 stood at Rs. 6.34 billion, which is said
to be 13-year-high in terms of value.
So, the order cancellation has come as a major setback to
the sector, which has been recovering strongly from
downturns of the past years.