Nepal's export oriented cotton towel industry is on the brink of collapse as 52 towel manufacturing companies have wound up operations out of the 53 companies which existed earlier, said Deepak Sapkota, Managing Director, Dynamic Towel Industry (DTI).
Additional 20 percent customs duty hike on import of raw materials coupled with internal conflicts, were the factors for its decline.
The cotton towel industry was established with an investment of over 2 billion Nepali rupees ($28.57 million).
Almost $10 million worth of cotton towels used to be exported by these 53 companies which has declined to $1.5 million worth of exports presently, informed Nepal Cotton Towel Manufacturers' Association.
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