Kathmandu: The government has identified footwear industry as the sector of high export potential. It is listed among the industries of high export potential in the annual budget of current fiscal year, 2079/80.
As per the budget, clinker, cement, steel, footwear, purified water, and IT are the things with high export potential. The government has decided to provide up to eight percent subsidy while exporting these items.
Although the policy is in place, the entrepreneurs have complained that there was no environment conducive for it. Chairman of Footwear Producers’ Association, Naniraj Ghimire, said there was inadequate initiative from the government side to protect and expand domestic products. “Although government has said it provides subsidy, we’ve not received any support.
Government’s policy must be enforced in practice,” he underscored.
He further said production cost of Nepali shoe and sandal is high, which is the reason why Nepali products can not compete with foreign products. High interest rate, high custom duty on raw materials and low invoice are other problems facing this industry, Ghimire explained.
Moreover, he argued the footwear business is also linked to social image where it is considered not appropriate profession for Brahmin and Chhetris people. Similarly, the illegal supply could be curbed if the revenue department and inland revenue department conducted effective market monitoring at border.
The 16th international footwear industrial fair is going on at Bhrikutimandap now. (RSS)
