October 8: The export of handcrafts from Nepal has increased in the last fiscal year after a slowdown in 2015/16. According to the Federation of Handicraft Associations of Nepal (FHAN), the export of handicrafts has gone up by 13 percent in the fiscal year 2016/17 while it was down by 0.48 percent the previous year.

The demand for Nepali handicrafts is high in the international market. Handicrafts worth Rs 4.76 billion were exported in the fiscal year 2015/16. In the last fiscal year, Nepal had exported handicrafts worth Rs 5.39 billion in the last fiscal year, a rise of 13 percent. 

Rishi Raj Subedi, deputy director at FHAN, said that the situation of export of handicrafts has seen progress in the last fiscal year in comparison to previous years. “The demand of new types of handicrafts like felt crafts, Allo products, metal crafts and crafts from glasses has increased.  The export is taking place accordingly,” he said, adding, “On contrary, the demand for old types of handicrafts like pashmina, silk products, silver products and leather products has gone down.”

Twenty five types of handicrafts are exported from Nepal to 60 countries including the United States of America, China, Denmark, France, Germany, Canada, Japan and the Gulf countries. The main market of Nepali handicrafts is the USA, which buys 30 percent of the annual export from Nepal, according to the Federation of Nepalese Chambers of Commerce and Industries (FNCCI).

FHAN Deputy Director Subedi stated that the development and promotion of handicrafts has become challenging. He said poor competition in the market, lack of raw materials and maximum usage of machineries have contributed in failure of maintain the unique identity of the handicraft business resulting in problems in the export.

FHAN accused the government of failing to prioritize the handicraft sector. Traders say that they are facing problems as the government has not allocated budget for this sector.

“We receive limited budget which is not sufficient to organizing fairs for promotion. The government provides such budget under the Cottage and Small-Scale  Industries,” Subedi told New Business Age.

Traders say that they get only 2 percent incentives in export, that too through a complicated process.