Manufacturing output projected to grow by 14.37%

KATHMANDU, July 16:

Country´s manufacturing production expected to grow by 14.37 percent till the end of the third quarter of 2014/15 compared to corresponding period of 2013/14, the Central Bureau of Statistics (CBS) said on Wednesday.

Unveiling the Producers Price Index (PPI) report in Kathmandu on Wednesday, CBS projected that sugar, soft drinks, Hume pipe and rosin will see healthy rise in production.

 Sugar production is projected to increase by an all time high of 255.7 percent. Similarly, production of soft drinks, Hume pipe and rosin is projected to grow by 101.2 percent, 55.8 percent and 45 percent, respectively.

Likewise, production of cement, soap, bricks, GI pipe, cartons, processed wood, processed leather and beer is projected to increase by 20 percent. Production of other products like vegetable ghee, plywood, mustard oil, concrete, noodles, hand-knit carpet, electric wire and paints is projected to go up by 10 percent.

However, tea production is likely to fall by 46 percent in the review period. Similarly, production of jute products, wheat flour, and chocolate is seen falling by 18 percent, 16.5 percent and 12.6 percent, respectively. Likewise, production of biscuit, cigarette, rice, alcohol and soybean oil is projected to decline marginally.

“Rise in manufacturing production will help the government to achieve economic growth target,” Bikas Bista, director general of CBS, said.

PRICE INCREASED BY 5.96 PERCENT


Average price of manufacturing products has increased by 42.6 percent since 2008/9 and 5.96 percent since March, 2013.

Since March last year, price of vegetable ghee has increased by 10.44. But prices of mustard oil and soybean oil declined by 1.92 percent and 4.75 percent, respectively.

Prices of processed milk, rice flour and wheat flour have increased by 3.49 percent, 7.92 and 12.59 percent, respectively. Animal feed has become dearer by 6.94 percent since March last year. Likewise, prices of biscuit, bread, sugar, chocolate, noodles and processed tea have increased by around 3 percent, according to CBS.

Beverages and tobacco products have become dearer by 5 percent and 5.88 percent, respectively, since March 2013. Though price of yarn came down by 3.12 percent, price of cloths has gone up by 9.46 percent, according to CBS.

According to CBS, prices of woolen carpet, readymade garment and processed leather have gone up by 20.14 percent, 8.85 percent, and 4.41 percent. Similarly, prices of soap and medicine have increased by 8.24 percent and 15.23 percent, respectively. Plastic products have also become dearer 10 percent.

The Input Price Index of construction sector unveiled by CBS shows wages and price of construction materials have gone up by 7.2 percent and 6.7 percent, respectively, since March last year. Prices of construction inputs like tile, lead, polythene pipe, electric wire, bitumen and aggregates have raised the cost of construction, CBS said in its report.

The average input price index of construction sector has gone up by 6.84 percent, according to the report.

Sugar production projected to increase by a record 255.7 percent
- Production of tea, biscuits, alcohol, rice and chocolate falls
- Average prices of manufacturing products up by 5.96 percent
- Wages and price of construction materials up by 7.2 percent and 6.7 percent respectively

Source: Republica