The domestic industries have been utilising only a little more
than half their capacity, according to a report.
"Capacity utilisation of Nepali manufacturing industries
stands at 57.83 per cent," according to the central bank. "A fiscal year
ago in 2011-12, the capacity stood at 57.79 per cent, not much different from
the current study."
The study carried out in eight major cities and surrounding areas
covering 47 districts revealed that the industrial environment has not yet
improved due to prolonged political transition and power crisis, though the
country has seen less labour trouble recently.
The study carried out research of industries producing some 23
products including vegetable ghee, cooking oil, rice, wheat flour, biscuits,
sugar, noodles, animal feed, processed tea, beverages, liquor and cigarette in
Kathmandu, Biratnagar, Janakpur, Birgunj, Pokhara, Siddharthanagar, Nepalgunj
and Dhangadhi and surrounding areas. Likewise, the study also took stock of cotton
textiles, woollen garment, pashmina, garment, paper, soap, brick, cement, iron
and steel and electric wire manufacturing units.
The study 'Economic Activity Report 2012-13', claimed that noodles
factories saw highest capacity utilisation of 87.4 per cent, whereas rice
factories recorded only 22.1 per cent.
Likewise, the report also revealed a big downfall in paddy
production in the last fiscal year has contributed to the dismal performance of
rice factories. "The state of rice industries will be better this year as
rice production is expected to be better this year."
The report also forecast that noodles, biscuits and light
beverages industries will witness a positive growth this year also due to
increased consumption habit and rising living standard of the people that has
changed consumption pattern.
The manufacturing of soybean oil, rice, wheat flour, animal feed,
biscuit, sugar, noodles, refined tea, liquor, beer, refined leather, resin,
medical products, plastic products, brick, cement, iron and steel, GI wire,
metal utensils, aluminum products and footwear posted growth in terms
production capacity in the last fiscal year, whereas production capacity of vegetable
ghee, mustard oil, dairy products, light beverage, thread, synthetic apparels,
jute products, wooden products, paper, electric wire and cable, and tire and
tube dropped.
The report also identified
which district boosts of what type of products. Kathmandu and its surrounding
area mainly produces refined milk, pashmina, noodles and footwear, while Biratnagar
produces ghee and oil, daily essentials, jute products, metal products and
cement. Similarly, Janakpur produces sugar, liquor, paper and cement, whereas
Birgunj mostly manufactures refined milk, animal feed, light beverage,
cigarette, leather, apparels, cement, refined lather and medical items. Pokhara
mostly manufactures biscuit, noodles and rubber, while Siddharthanagar produces
wheat flour, light beverage and cement, and Nepaljung manufactures mustard oil,
wheat flour and rice. Dhangadhi has more industries of wheat flour and resin.
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