Steps to boost handicraft sector, expand export footprint

REZAUL KARIM
The government has initiated comprehensive strategies for the handicraft sector, aimed at boosting exports and broadening the nation's export basket, according to the Commerce Ministry.
To achieve these goals, a high-powered committee has been formed by the ministry to develop an action plan within a month. This 13-member committee will assess the overall situation of the handicraft sector.
Sources said the government intends to implement the "One Village, One Product" (Ekti Gram, Ekti Ponno) strategy to promote Bangladeshi handicrafts both domestically and internationally.
In a recent notification, the Commerce Ministry has designated handicrafts as the product of the year 2024, emphasising the role of women in their production and aiming to enhance exports and diversify the export basket.
Earlier, the Commerce Ministry instructed Deputy Commissioners (DCs) to compile lists of handicrafts in their respective districts, including details such as producers' names, addresses, and the stories behind their products.
DCs have also been directed to showcase handicrafts prominently at the upcoming fair during Pahela Baishakh, the Bengali New Year.
Handicrafts can play a special role in the "One Village One Product" selection process. Steps are being taken to select handicraft products (which may include food items) from villages, identify producers, choose the best products from the country and brand them for competitiveness in domestic and international markets.
To further bolster the sector, the ministry plans to exhibit 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, alongside policy support such as low-interest or interest-free loans from financial institutions, without the need for collateral. Additionally, efforts are underway to promote these products through e-commerce platforms.
The handicraft industry is integral to Bengali culture and heritage, noted for its labor-intensive nature, low capital requirements, and reliance on local raw materials, which keeps production costs low, said an official.
He emphasized its potential to contribute significantly to poverty alleviation and women's economic empowerment, providing opportunities for financial independence.
With Bangladesh graduating from the least developed country club, the government should place greater focus on smaller but promising sectors like handicrafts, he noted. These products are gaining huge popularity worldwide. The sector currently benefits from a 10 per cent cash incentive on export receipts, which was double the rate before 2019.
According to an estimate by the International Market Analysis Research and Consulting Group, the global handicraft market size reached $752.2 billion in 2022. The market size is expected to rise to $1,296.6 billion by 2028.
Bangladesh's export earnings from the sector saw sharp growth in the three fiscal years from 2020 to 2022. According to Export Promotion Bureau (EPB) statistics, the figures were $20.52 million, $33.97 million and $42.83 million respectively.
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