The ongoing Iran–Israel conflict is beginning to affect Nepal’s garment industry, as rising global oil prices and disrupted supply chains push up production costs.
Industry representatives say the cost of producing garments in Nepal has increased by 10 to 15 per cent in recent weeks. The rise is largely driven by higher prices of petrochemical-based raw materials such as nylon, acrylic, and polyester, which are widely used in textile manufacturing.
The conflict has also disrupted international logistics, leading to delays in shipments and a sharp rise in cargo costs. Materials that previously arrived within a few days are now taking up to a week or more, with no certainty in delivery schedules. At the same time, finished goods are facing delays in export, and new orders have slowed, leaving many businesses in a wait-and-watch mode.
Beyond fabric, the cost of essential inputs such as thread, buttons, zippers, and packaging materials has also increased. Transport disruptions at key trade routes, including border points with China, have further complicated supply chains.
Nepal’s garment sector, which includes hundreds of small and medium enterprises, is particularly vulnerable to such external shocks. Many businesses rely heavily on imported raw materials, making them sensitive to global price changes.
Rising energy costs have added further pressure, as textile production processes such as spinning, weaving, and dyeing depend heavily on electricity and fuel. These increased costs are likely to be passed on to consumers, potentially raising retail prices.
However, demand may also decline as clothing is often considered a non-essential expense during periods of economic uncertainty.
Experts warn that if the crisis continues, it could lead to reduced production, fewer orders, and possible job losses—not only in Nepal but across South Asia’s wider garment industry.