Plethora of hurdles hits handicraft export
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KATHMANDU, JAN 08 -
Handicraft traders have stated that exports have not taken off on the scale expected despite the large potential. They said that lack of support from the government and political instability were the main obstacles.
The 30th annual general meeting of the Federation of Handicraft Associations of Nepal (FHAN) held on Friday showed the dismal condition of the Nepali handicraft sector that has been facing a number of problems affecting production, promotion and export.
FHAN has been asking the government for land to establish a handicraft village for the last seven years. However, there has been no concrete decision in this regard because of political instability. “We are very much hopeful this year that the Ministry of Industry will do something,” said FHAN president Bikash Dhakhwa while addressing the annual meeting.
Dhakhwa said handicraft producers had been plagued by a shortage of gold, silver and electricity. Lack of a cadmium testing lab, new markets and proper promotion were other problems, he added.
The federation has also shown interest in holding an international-level handicraft fair in Nepal annually. “Promotion of exportable products is a must, and if the government allocates a budget each year, we are ready to organise an international trade fair in Nepal for five consecutive years,” said Dhakhwa.
The impact of the recession in the major markets, concentration of exports in the traditional markets, and competition with international products are some of the problems being faced by Nepali exporters, said exporters.
Surendra Bir Malakar, president of the Nepal Chamber of Commerce, underscored the need to diversify production of handicraft products to boost export and ease the trade deficit being faced by the country. “The government should provide tax rebates to handicraft exporters so that Nepali products become competitive in the international market,” said Malakar. “There is also a need to produce high-value products.”
On the occasion of the annual general meeting, the federation also honoured the 11 largest exporters in two categories—top exporters of handicraft goods and product-wise top exporters of handicraft goods.
Everest Fashion was the top exporter in 2009-10 with exports worth Rs 113.64 million. Everest Pashmina Knitting and Weaving Industry was second with pashmina exports of Rs. 113.02 million. Likewise, Bagmati Arts and Craft was third with exports of felt products worth Rs. 89.72 million.
Nepal exported handicraft products valued at Rs. 2.78 billion in the last fiscal year. In the first quarter of the current fiscal year, exports increased by 8.91 percent. However, FHAN said that the growth was not that satisfactory.
Posted on: 2011-01-08 09:23
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