Steps to revitalize the handicraft sector, increase export reach

According to the Ministry of Commerce, the government has initiated comprehensive strategies for the handicraft sector aimed at boosting exports and expanding the country’s export basket.

To achieve these goals, the ministry has established a high-powered committee tasked with developing an action plan within a month. This 13-member commission will assess the overall situation of the craft sector.

Sources said the government intends to implement the “One Village, One Product” (Ekti Gram, Ekti Ponno) strategy to promote Bangladeshi handicrafts both at home and abroad.

In a recent notification, the Ministry of Commerce recognized handicrafts as the product of the year 2024, highlighting the role of women in their production and aiming to increase exports and diversify the export basket.

Earlier, the Ministry of Commerce had directed deputy commissioners (DCs) to prepare lists of handicraft products in respective districts with details such as manufacturer’s names, addresses and stories behind their products.

DCs have also been instructed to display handicrafts prominently at upcoming fairs during Pahela Baishakh, the Bengali New Year.

Handicrafts can play a special role in the “One Village, One Product” selection process. Steps are taken to select handicraft products (which may include food items) from the countryside, identify producers, select the best products from the country and brand them for competitiveness in the domestic and international markets.

To further strengthen the sector, the ministry plans to display these products at airports, national institutions and selected Bangladeshi embassies abroad.

The government will offer training and technical assistance to improve product quality and competitiveness, as well as policy support such as low- or no-interest loans from financial institutions, without the need to post collateral. Activities are also carried out to promote these products via e-commerce platforms.

The handicraft industry is an integral part of Bengali culture and heritage and is known for its labor intensity, low capital requirements and dependence on local raw materials, which keeps production costs low, the official said.

He highlighted its potential to make a significant contribution to poverty reduction and women’s economic empowerment by providing opportunities for financial independence.

He noted that since Bangladesh graduates from the least developed country club, the government should focus more on smaller but promising sectors such as handicrafts. These products are extremely popular all over the world. The sector currently benefits from a 10% cash incentive on export earnings, which was twice as high as before 2019.

According to estimates by the International Market Analysis Research and Consulting Group, the size of the global handicraft market reached $752.2 billion in 2022. The market size is expected to grow to $1,296.6 billion by 2028.

Bangladesh’s export earnings from this sector saw a sharp increase during the three fiscal years from 2020 to 2022. According to Export Promotion Bureau (EPB) statistics, the amounts were $20.52 million, $33.97 million and $42.83 million respectively.

(email protected)