Winter clothes have become costlier in Nepal due to a strong dollar, higher transportation costs and slowed deliveries from China. Prices of winter clothes have become exorbitant this season.

It is normal for prices to go up every year, but this year business has gone haywire.Jacket prices have gone up by Rs600 to Rs1000 depending upon the design and quality of the material. Sales have declined.

A shortage of raw materials has prevented Nepal’s clothing makers from ramping up production. After inflation slowed imports and China also slashed shipments, Nepal’s apparel manufacturers had hoped to cash in on the lack of competition but were held back by a shortage of raw materials.

Prices of yarn and fabric are 20 per cent to 30 percent higher than they were last year. Zippers have become 40 percent dearer. On top of that, apparel makers pay a18 per cent to 30 percent tax. All these added costs have made goods expensive in the domestic market. Import of raw materials from China was halted after the Covid pandemic and Nepal then announced a 100 percent margin amount requirement to open a letter of credit, which made things more difficult for importers.A scarcity of skilled manpower, caused by mass departures to greener pastures abroad, is another problem troubling apparel manufacturers in Nepal.