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 movement.

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.

 

 

 

MKMA/3120/apparelresources/270720

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