Handicraft Day Should Be Recognised as a National Day: FHAN President Shakya

The Federation of Handicraft Associations of Nepal (FHAN) is marking its 53rd anniversary and the 14th Handicraft Day today, December 14. With more than 4,500 members nationwide, the federation has been working to promote Nepal’s handicraft sector, honour veteran artisans and attract younger generations to the industry.

In an interview with New Business Age, FHAN President Rabindra Shakya spoke about the need for national recognition of Handicraft Day, challenges facing the sector, policy gaps and future opportunities. Excerpts:

FHAN is marking the 14th Handicraft Day. What is its background and objective?

The government observes dozens of days with national recognition, but the handicraft sector—despite its contribution to employment, revenue, exports and foreign exchange—has not received due priority. The private sector has been doing what the state should have done.

FHAN has been observing Handicraft Day for the past 14 years and has long demanded that the government recognise it as a national day. Unfortunately, the government has not given it serious attention. Once the state officially owns this day, it will gain importance, dedicated units will be formed, and clear policies and procedures will follow, which will help develop and promote the sector.

How is FHAN honouring artisans and exporters on this occasion?

Recognising and protecting artisans is both the federation’s and the state’s responsibility. This year, we are honouring 17 senior artisans aged between 70 and 90 under the “Senior Artisan” category. This is meant to encourage skill transfer between generations.

When senior artisans are respected, the younger generation is motivated to enter the sector. We are also honouring exporters, as we do every year. This time, 11 top exporters are being recognised.

What would be the benefit if Handicraft Day is declared a national day?

Once the government grants national recognition, policies and guidelines will be developed, and a responsible unit and officials will be designated. That is all we are asking for—government ownership.

At present, there is no clear authority overseeing the handicraft sector. Its problems remain unaddressed. If, like Environment Day, a specific ministry or unit were assigned to observe Handicraft Day, it would clarify institutional responsibility. Even a single dedicated section within a ministry would help, including in easing import and export processes.

How do you assess the current state of Nepal’s handicraft industry?

There has been improvement compared to the past. Data from the Trade and Export Promotion Centre show growth in handicraft exports. Handicraft entrepreneurs have also received the Commercially Important Person (CIP) awards from the Ministry of Industry, Commerce and Supplies.

Over the past two years, CIP awards were given based on exports worth Rs 49 billion, which is a positive sign for the sector.

How much investment and employment does the sector generate?

There is no exact data—neither the government nor FHAN has it—which is another reason we want national recognition. FHAN has over 4,500 members, including entrepreneurs, exporters, artisans and associations at provincial and district levels.

Some companies alone export goods worth up to Rs 27 billion, and domestic consumption is equally significant. Based on this, total investment in the handicraft sector can be estimated at Rs 30–35 billion. The sector provides employment to thousands of people.

What has FHAN done to promote and protect the sector?

We focus mainly on market access. FHAN organises exhibitions and fairs every year and prioritises online marketing. However, handicraft production cannot increase without protecting artisans.

There are challenges such as shortages of raw materials, lack of skilled manpower, and low prices for finished products.

How effective is the government’s interest subsidy policy for small and medium enterprises?

The policy intent is good, but implementation is complicated. Documentation requirements are burdensome, making it difficult for entrepreneurs to access the benefits. Even when subsidies exist, they are not easily available.

Why hasn’t handicraft export made a major leap despite high potential?

The main reason is the lack of generational transfer. The younger generation is increasingly going abroad for education and employment. Accessing raw materials from abroad is also difficult.

Training new workers takes years, as handicrafts are largely handmade. Advanced technology cannot be applied everywhere, and imported technology is expensive.

Is the growing global demand for modern designs a challenge for traditional handicrafts?

Not necessarily. These products serve different markets. We are ready to move into digital markets, but we face problems with payment gateways, logistics and laboratory testing.

There are also issues such as foreign exchange misuse. These challenges need policy support.

How has e-commerce affected the ‘Nepali handicraft’ brand internationally?

Today’s market is driven by innovation. Without e-commerce and digital marketing, business growth is nearly impossible. However, trust, copyright and imitation are major concerns.

Foreign producers copy Nepali designs and mass-produce them. The government has failed to build a national handicraft brand. Individual branding takes at least two years due to patent and trademark processes.

FHAN is now working on collective trademarks and product-based branding to address this gap.

How important are innovation and technology, including AI, in handicrafts?

Innovation and technology are important, but their use depends on the product. I do not believe AI should dominate handicrafts, as the sector is deeply connected to Nepal’s originality, culture, tradition and spirituality.

That said, technology is needed, especially when there is bulk demand. The key is to balance technology with originality. FHAN supports members in improving packaging and finishing through this balance.

What is FHAN doing to address skill and enterprise transfer issues?

Education is the key. FHAN is developing academic curricula and publishing a book titled Handicraft Products of Nepal, covering history, technology and markets.

If handicrafts are taught at school and college levels, youth interest will grow. We have drafted a curriculum and plan to work with Kathmandu University and Lumbini University for its implementation. Government support is needed to ensure university recognition.