Nepal footwear industry facing raw material shortage
Reports seem to indicate that the local footwear industry will face a shortage of materials as the customs office at Tatopani is out of service since the April earthquake
The clearance of shipments through Tatopani, the main entry point for Chinese imports, has stopped with the authorities saying that the bridge connecting the two countries has extensive damage and cannot be used.
The rains might damage even further the operational roads and authorities in China have been asked to help clear the trucks at the border.
Local agency news are reporting a significant impact in the Nepal-based footwear industry of this deadlock, as roughly 60% of the raw materials used by the industry comes from China, and the main route for the shipments into the country is highly damaged.
Raw materials like leather, Rexene, lining, inter-lining, PVC sole, nylon net, rubber, elastic, lace and chemicals are imported from China and are necessary for footwear production.
The Dashain-Tihar festive season sales accounting for a significant share of local companies’ revenue might be negatively impacted by the situation due to the interruptions in production and lack of stocks.
The rains might damage even further the operational roads and authorities in China have been asked to help clear the trucks at the border.
Local agency news are reporting a significant impact in the Nepal-based footwear industry of this deadlock, as roughly 60% of the raw materials used by the industry comes from China, and the main route for the shipments into the country is highly damaged.
Raw materials like leather, Rexene, lining, inter-lining, PVC sole, nylon net, rubber, elastic, lace and chemicals are imported from China and are necessary for footwear production.
The Dashain-Tihar festive season sales accounting for a significant share of local companies’ revenue might be negatively impacted by the situation due to the interruptions in production and lack of stocks.