Hassles in handicraft

Problems and prospects of handicraft industry

Abhilasha Rayamajhi
Kathmandu

The handicraft industry creates jobs for 1.1 million people in Nepal and contributes 6 per cent to national GDP. Annually, the industry generates Rs 12- 13 billion through exports as well as sales in the local market.
However, exports dropped by 11 per cent as compared to the last six months figures. In the last six months of this fiscal year the industry generated Rs 2.29 billion through exports whereas last year in the same period the business was worth Rs 2.58 billion.
The vibrant Mithila craftwork, detailed carvings in sculptures and the designs of bright textiles, the handicraft industry in Nepal has it all. The diverse culture of Nepal is reflected in the art and crafts of the handicraft industry of Nepal. This industry consists of a huge range of products from textiles like pashmina, silk, Dhaka to non textile products such as sculptures, jewellery, and even handmade pickles, paper crafts and so on. FHAN currently exports more than 40 products to about 80 countries worldwide.
Hurdles in export 
Surendra Bhai Shakya, Vice President of the Federation of Handicraft Associations of Nepal ( FHAN) pointed out that there are many challenges in this industry.
He shared, “ Handicraft business is an export- oriented but there are many hassles in the airport that exporters have to go through.” He explained that exporters must produce nine different documents and it takes 41 days to process them before they are cleared for export.
“ The government should have simplify the process of lengthy documentation and every process should be done under one window in order to revive the sector,” according to him.
Lack of resources 
According to Laxman Mandal, Proprietor of Mithila Women Handicraft Centre, said “ Handicraft industry is a labour intensive industry and skilled human resource is a pre- requite in this business.” However, the younger generation is not interested in this craft as per him. He adds, “ Most young people are leaving the country in search of better opportunities aboard.” Secondly, raw materials used in making handicrafts were not available due to the economic blockade, he shared. He explained that despite the challenges the industry grew by 10 to 15 per cent annually.
However, due to the obstructions in 2015 the industry witnessed 20 per cent decline. Lastly, lack of capital is another challenge for this industry according to him as financial institutions are not yet ready to finance or offer loans to small scale and cottage industries.
Tourism and handicrafts 
According to industrialists, tourism and the handicraft industry goes hand in hand. FHAN is working towards achieving national policies and structural implementations for the development of this industry. FHAN is also working to establish and manage the SAARC Handicraft Design and Development Centre with the government which would serve as an institute and focus exclusively on handicrafts.
The Federation has proposed an innovative idea of a handicraft village to attract tourists.
“ If the proposed plan works out as intended it could be a major tourist attraction that conserves, promotes our heritage and also creates employment and collects revenue,” according to Shakya. Lastly, he concludes, “ The handicraft sector in Nepal is a growing business and has huge prospects both at the national and international level.” Despite the huge prospects the budget remained silent about the issues related to handicraft industry.
It has not expressed cash incentives to the handicraft businesses or addressed the proposal related to SAARC- level handicraft centre. The ministry of industry has provided land and the SAARC Development Fund has made commitment to provide necessary machinery and equipment.
Events for exposure Shakya said, “ In order to showcase the variety of items from the industry and revitalise the economy, we organised the 13th Handicraft Trade Fair and 11th Craft competition from May 5 to 9 in Bhrikuti Mandap, Kathmandu.” With a total of six pavillions and 177 stalls the exhibition showcased 12 stalls from Bangladesh and 10 from India and stalls from Bhutan and Pakistan.
“ It is a platform where we connect to a large number of customers in a short period of time. Further, we also build long- term partnerships with other businesses and gain an exposure rather than immediate sales,” said Gita Maharjan, Proprietor at Traditional Paper Craft. Handicraft businesses believe that exhibitions like these are crucial to create visibility in the local market and also gain exposure in the international market in the long run.

(The printed version of this article was published on June 5, 2016 on The Himalayan Times- Perspectives.)