Surya Nepal closure demoralises investors
KATHMANDU, June 17:
Indefinite closure of one of the largest garment exporter of Nepal, Surya Nepal will not only demoralise entrepreneurs but also foreign investors and hit government coffer, according to garment exporters.
Unless the labour problem is solved the garment industry can not be revived, president of Garment Association-Nepal (GAN) Uday Raj Pandey, said, adding that due to continuous problems in the industrial sector, the number of large scale garment industries is decreasing.
There are only three to four large scale garment industry in operation currently. Surya Nepal, Amy Apparels, Momento and Sherpa Outwear are the big garment factories among which Surya Nepal has announced indefinite closure of the factory.
“Surya Nepal alone covers a large portion of total garment exports abroad,” he added.
Along with a violent agitation of workers in its factory in Biratnagar, the factory management decided to close factory for indefinite period yesterday.
“We are the largest exporter of Nepali garment to India and other foreign countries hence the closure of the factory will create negative impact on our exports and to factory workers as well,” said corporate senior general manager of Surya Nepal Ravi KC.
The factory has about 500 workers. “This year, we had encouraging exports figure,” he said, adding that the company has received order of one million piece worth Rs 510 million. “We do have huge number of orders but until government provides us with security and working environment, we are not in a situation to restart the work,” he added.
Labour trouble is a key reason behind decline in garment export,” said Pandey. Last year total garment export stood around Rs 4.35 billion.
Once, Nepali garment industry used to export over Rs 12 billion readymade garments annually.
Source: THT
Indefinite closure of one of the largest garment exporter of Nepal, Surya Nepal will not only demoralise entrepreneurs but also foreign investors and hit government coffer, according to garment exporters.
Unless the labour problem is solved the garment industry can not be revived, president of Garment Association-Nepal (GAN) Uday Raj Pandey, said, adding that due to continuous problems in the industrial sector, the number of large scale garment industries is decreasing.
There are only three to four large scale garment industry in operation currently. Surya Nepal, Amy Apparels, Momento and Sherpa Outwear are the big garment factories among which Surya Nepal has announced indefinite closure of the factory.
“Surya Nepal alone covers a large portion of total garment exports abroad,” he added.
Along with a violent agitation of workers in its factory in Biratnagar, the factory management decided to close factory for indefinite period yesterday.
“We are the largest exporter of Nepali garment to India and other foreign countries hence the closure of the factory will create negative impact on our exports and to factory workers as well,” said corporate senior general manager of Surya Nepal Ravi KC.
The factory has about 500 workers. “This year, we had encouraging exports figure,” he said, adding that the company has received order of one million piece worth Rs 510 million. “We do have huge number of orders but until government provides us with security and working environment, we are not in a situation to restart the work,” he added.
Labour trouble is a key reason behind decline in garment export,” said Pandey. Last year total garment export stood around Rs 4.35 billion.
Once, Nepali garment industry used to export over Rs 12 billion readymade garments annually.
Source: THT
