Nepal Yarn industry gets 60 percent boost due to increase in demand from India

Nepal’s yarn industry has recently witnessed a surge in demands that has increased business operations for local handloom producers up to 60 percent, news ncy ANI’s report confirmed. Producers have attributed business bloom to increasing orders coming from India after phased reopening and resumption of ecomic activities post coronavirus lockdown.

Government of India, under India-Nepal Foreign Treaty of Tre Agreement imports woven handicrafts and home textile products essential to Nepal’s Textile And Garment Cloth Industries. Nepal’s GDP and livelihood of small scale textile weaving businesses largely depend on se handicrafts exports.

"We are w exporting yarns to India. My company, in particular, is running at 70 percent of capacity, or companies also are following same steps," ANI quoted a Nepali proprietor Bishnu Neupane of Jagdamba Spinning as saying. "We are receiving high demands and orders from India," he stressed.

Indian states of Punjab and Assam, and Siliguri, Guhawati, Gorakhpur, and New Delhi have been among largest importers of Nepal’s yarn industry products for over several years. se states place bulk orders that comprise nearly 60 percent of Nepal’s total yarn manufactured goods export. 

Re: Nepal Landslide: Police And Security Forces Start Search Operation, 11 Killed

Re: Nepal Urges SAARC Nations To Convene 19th Summit Soon; To Collectively Fight Coronavirus Pandemic

"We h to halt production due to lockdown in India and Nepal, but w we are back to business employing 17 hundred workers with food and accommodation provided by company," a proprietor of Reliance Spinning, Shashikanta Agrawal, was quoted by ANI. 

"As we are receiving orders, our business is slowly getting back on track,” he ded.

Turkey h suspended GSP benefit

After India, Turkey is second-largest importer of yarn from Nepal. Turkey, however, suspended generalized system of preferences (GSP) benefit on Nepal's yarn handicraft products in 2018 in wake of allegations that Nepal was using  Chinese yarn material to manufacture exported goods.

Later, representatives from Turkey's Yarn Producers’ Association ended  import barriers after Nepal provided information on production units, production capacity of spinning mills, employment, and taxes to directorate general of customs enforcement in Turkey, according to Nepal’s state-run media sources.

India, meanwhile, imported Nepali yarns worth close to one billion Nepali rupees pushing some of key players like Reliance Spinning, Triveni Spinning, and Jagdamba Spinning to operate over 60 percent capacity. 

Re: Nepal Citizens Protest At China's Kathmandu Embassy After Spotting Land-grab Backstabbing

Re: Nepal PM Oli Pushes India-proposed Convention On International Terrorism (CCIT) At UNGA