Textiles Prices Rebound 5.89% in 2025/26 After Two-Year Decline

The Wholesale Price Index (WPI) for July–August 2025/26 reveals a significant turnaround in Nepal’s textiles sector, which posted a strong 5.89% increase compared to June–July 2025. This rebound follows two consecutive years of decline, where textile wholesale prices fell 4.35% in 2023/24 and remained almost flat in 2024/25 (+0.44%).

The recovery in textile prices reflects both domestic and external factors. On the domestic side, rising production costs—including raw cotton, dyes, and imported fabrics—have pushed up wholesale prices. Stronger seasonal demand for clothing, driven by festivals and consumer spending, has also supported the rebound. On the external side, higher import prices from regional suppliers, along with currency fluctuations, have contributed to the overall increase.

This rebound is particularly important because the textile sector, while accounting for only 1.01% of the WPI weight, has broader economic implications. It affects garment manufacturers, retailers, and exports, and higher wholesale prices may soon translate into increased consumer costs for clothing. For small-scale textile businesses and traders, the price recovery provides relief after years of stagnation, but for households, it signals rising clothing expenses at a time when food inflation is already adding pressure.