Kathmandu, Dec 06: The largest garment exporter of
Nepal has shut down its operation citing labour problem.
Cotton Comfort, which exports USD 9 million worth of
readymade garments annually, has closed down its production
due to the increased intervention by the Maoist trade union
and other trade unions affiliated with the major political
parties, according to sources at the Federation of Nepalese
Chamber of Commerce and Industries.
"We have decided to close down the production as we
were doubtful of meeting commitments for timely delivery,"
said Subhrat Dhital, the chairman of the company.
Sources in the factory said increased intervention by
the trade union activists forced the management to shut down
its production unit.
The factory, which accounts for 18 percent of the
total garment export to third country, last year won the top
foreign currency earning exporter award.
Cotton Comfort, located in Kathmandu, has been shut
down at a time when the Seven-Party Alliance government and
the CPN-Maoist have signed a peace agreement to end the decade
long conflict and restore lasting peace in the country.
The message sent by the senior political leaders was
not translated into action at the grassroot level, said Uday
Raj Pandey, general secretary of the Garment Association of Nepal.
Entrepreneurs over the past few months have been
citing that labour problems has seriously affected timely
delivery of goods. The situation in the garment factory was
no different than what is happening in the whole industry, he
added. The number of operating garment factories has declined
to 9 from 18 over the last one year.
Bureau Report
First Published: Wednesday, December 06, 2006, 00:00