Time for handicrafts to broaden export horizon

There has been a steady growth in handicrafts exports for several years thanks to the support provided by the government to this sector.

During the first nine months (July–March) of FY2017-18, export earnings from handicrafts fetched USD 12.46 million, registering a growth of 17.11 per cent, from USD 10.64 million during the same period of the previous fiscal year (2016-17).

Explaining the reasons behind this growth, SU Haider, owner of the Island Trading Corporation, told The Independent that the global cost of producing handicrafts is on the rise because the wage rate is higher in countries that traditionally produce such items. “But the wage rate is low in Bangladesh. Since all raw materials are available here, we can produce handicrafts at prices that would be lower than those in other countries,” he said.

“Countries like China, Vietnam and Thailand, which are known for

producing handicraft products, are shifting towards high-tech industries. This is an opportunity for us to capture the global market,” he added.

Haider also said that the SME Foundation, a government-owned organisation of Bangladesh, is offering single-digit loans to new entrepreneurs to encourage the export of handicrafts. New entrepreneurs are exploring new markets for exporting their innovative products, he added.       

“We don’t have adequate research labs to produce unique and innovative designs. We don’t have any research institution for analysing the local and global markets and their needs and demands,” he said.

Bangladesh exports handicrafts mostly to North America, Europe and Middle Eastern countries, he said. "Cane is the most important raw material of handicrafts. We must preserve this component”, he added.  

Ashrafur Rahman Faruque, president of the Bangladesh Handicrafts Manufacturers' and Exporters' Association, said this particular sector requires very small investment. The handicrafts industry does not need big capital-intensive machines and massive funds, he added.

Skilled human resources and some craft tools are the key components in this sector, he noted.              

When asked about the challenges, Faruque said: “We don’t have sufficient research labs for designing innovative products. Besides, there is no vocational centre to train people on this craft."

“All raw materials required for handicrafts are available inside the country. We needn't import a single component from abroad,” he added.             

Around 50 lakh people are employed in the handicraft industry across the country, he observed.

Bangladesh produces and exports traditional handicraft products, such as nakshi kantha, pottery and terracotta, tant, muslin, jamdani, bamboo craft, shital pati and jute items, for decades to different countries around the world.

Faruque urged the government to facilitate loans with a simple interest rate to small and medium entrepreneurs (SME) entrepreneurs.

The local market for handicrafts is worth around Tk. 1,500–2,000 crore.

Time for handicrafts to broaden export horizon

There has been a steady growth in handicrafts exports for several years thanks to the support provided by the government to this sector. During the first nine months (JulyMarch) of FY2017-18, export earnings from handicrafts fetched USD 12.46 million, registering a growth of 17.11 per cent, from USD 10.64 million during the same period of the previous fiscal year (2016-17). Explaining the reasons behind this growth, SU Haider, owner of the Island Trading Corporation, told The Independent that the global cost of producing handicrafts is on the rise because the wage rate is higher in countries that traditionally produce such items. But the wage rate is low in Bangladesh. Since all raw materials are available here, we can produce handicrafts at prices that would be lower than those in other countries, he said. Countries like China, Vietnam and Thailand, which are known for producing handicraft products, are shifting towards high-tech industries. This is an opportunity for us to capture the global market, he added. Haider also said that the SME Foundation, a government-owned organisation of Bangladesh, is offering single-digit loans to new entrepreneurs to encourage the export of handicrafts. New entrepreneurs are exploring new markets for exporting their innovative products, he added. We dont have adequate research labs to produce unique and innovative designs. We dont have any research institution for analysing the local and global markets and their needs and demands, he said. Bangladesh exports handicrafts mostly to North America, Europe and Middle Eastern countries, he said. Cane is the most important raw material of handicrafts. We must preserve this component, he added. Ashrafur Rahman Faruque, president of the Bangladesh Handicrafts Manufacturers and Exporters Association, said this particular sector requires very small investment. The handicrafts industry does not need big capital-intensive machines and massive funds, he added. Skilled human resources and some craft tools are the key components in this sector, he noted. When asked about the challenges, Faruque said: We dont have sufficient research labs for designing innovative products. Besides, there is no vocational centre to train people on this craft. All raw materials required for handicrafts are available inside the country. We neednt import a single component from abroad, he added. Around 50 lakh people are employed in the handicraft industry across the country, he observed. Bangladesh produces and exports traditional handicraft products, such as nakshi kantha, pottery and terracotta, tant, muslin, jamdani, bamboo craft, shital pati and jute items, for decades to different countries around the world. Faruque urged the government to facilitate loans with a simple interest rate to small and medium entrepreneurs (SME) entrepreneurs. The local market for handicrafts is worth around Tk. 1,5002,000 crore.