Bowing down to the immense pressure from domestic hosieries that had been facing paucity of cotton yarn, Indian government imposed the ban from last October.[break]
"Nepali domestic cotton industries, mainly hosieries and small garments that depend on Indian cotton yarn, have been totally affected and forced to close their operations with the shortage of raw materials," said Gopal Prasad Kshetri, president of Clothing Industries Association, told Republica on Thursday. Nepali textile industries have been depending on the Indian cotton yarn to supplement the local demand for cotton.
According to Kshetri, Nepal imports 5,000 tons of cotton yarn annually, mostly from India, the largest producer of cotton in the world. Cotton yarns cost Rs 200 to Rs 500 per kg depending on the quality.
Most of the small readymade garments, Dhaka industries and hosieries that use cotton thread have been forced to close their operation since the southern neighbor imposed ban to ease the shortage of cotton in domestic market. Clusters of small garment factories that use cotton are operating in Thamel, Lubhu of Lalitpur and other parts of the countries.
Kshetri said most of the polyester thread required for local industries is produced by domestic industries. Polyester covers around 90 percent of the total local production of thread needed for local clothing industries.
"We are completely dependent on imported cotton, mainly from India, for the remaining 10 percent of the total thread requirement in the country. But the ban on cotton yarn from India has not only affected domestic supplies of cotton goods but their exports as well," said Kshetri.
In the past, when major Nepali textile industries such as Hetauda Textile and Butwal Dhago Industry were in full operation, Nepali clothing industries were fulfilling requirement of raw materials from domestic production.
Indian government had informed Textile Commission of India in Mumbai in late October about the decision to impose ban on cotton yarn export.
Indian government´s move came amid mounting pressure from its local hosiery industries that underwent massive lay-offs due to shortage of cotton yarn caused by unrestricted exports that led to a sharp rise in the price of cotton yarn in the domestic market. The industry provides direct employment to around a million people in India that exports around 720 million kg of cotton yarn annually.
Kshetri said Indian cotton yarn suppliers have ceased to provided price details for cotton yarns as demanded by Nepali importers since then. "We have informed the Ministry of Commerce and Supplies (MoCS) to take initiative to resolve the problem," he said.
Toya Narayan Gyawali, joint-secretary at the MoCS, said the ministry is making diplomatic effort with India to get the cotton export ban lifted soon.
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