Nepal Yarn and Textile Expo is being held September 15 to 19, 2017. The expo will showcase a range of textile products like cloths, knitted and hosiery products including machinery. There are altogether 55 stalls displaying locally produced textiles and garments.

Nepal’s textile sector, which is mostly cotton and synthetic based, is passing through a tough phase. A large number of textile factories in Nepal have either closed down or are on the verge of closure due to labor unrest, high taxes, unclear government policies etc.

Nepal charges customs and VAT duties on imports of polyester fabric from India in excess of 32 per cent. Against this, Nepal has provided tax relief to fabrics and garments exported by China which attract only 17 per cent duty. Nepal is strong consumer of polyester fabric. The textile sector in Nepal includes manufacturing of yarn, Jute, Woolen carpets, Garments, Pashmina and Cotton terry towels. These are also major exports from the country. Textile and yarn are more important for the local domestic market.

Jute farming and manufacturing used to be the main cash crop and exportable industrial product till the early 1970s but economic viability could not be maintained in the face of cheap substitutes like plastic. Jute now contributes only marginally to the economy.