Home ›› 10 Sep 2021 ›› Editorial
Roughly speaking handicraft is a type of product(s) which is normally handmade using traditional methods. It includes weaving (muslin, jamdani etc.), needle work like nakshikatha, pottery, bamboo and cane, ornament, brass items, shital pati, jute and leather goods, shell items etc. There is another similar word - handcraft. Both the words carry the same meaning but handicraft is normally used. As per traditional definition anything crafted with hand may be termed as handicraft but along the passage of time production procedure of handicrafts has also been changed. At present light tools and power machineries are also being used which reduce physical suffering of producers, accelerate production and save time. Handicrafts contain social, cultural, literary (mostly folklore), historical or religious values, are mainly decorative but necessary also.
As export item handicrafts play an important role in economy of Bangladesh. Its main export market is spread over around 50 countries of North America, Europe and the Middle East, size of domestic market is around Tk 12,000 crore. Bangladeshi handicrafts are now at the focus of large buyers including global giant Walmart. While other sectors are struggling during corona pandemic export of handicrafts have increased by about 50%
It is known that the size of global market of handicrafts may reach up to 526 billion US dollars by 2023. Bangladesh has the ability to capture a good portion of it but there are problems also because buyers have reduced price on the backdrop of huge demand in world market. In order to overcome this crisis entrepreneurs feel that it is necessary to reduce taxes, increase cash incentives and establish Karupalli following the model of Thailand, Vietnam, India and China.
Two major organisations are working to consolidate export of handicrafts. Aristaexport.com is a leading handicraft sourcing and exporting platform in Bangladesh, set up for the benefit of traditional handicraft makers, to remove the unemployment problem, to save and bring back lost Bangladeshi heritage and tradition. Another is Bangladesh Handicrafts Manufacturers and Exporters Association (Banglacraft), an organisation of handicraft entrepreneurs. In a recent interview regarding export of handicraft Golam Ahsan, President of Banglacraft told the Bangladesh Pratidin that demand is increasing abroad more than that at home. Buyers in the developed world now prefer handmade products. Government loan assistance is needed to set up Karupalli in the country to avail benefit of this global demand. Entrepreneurs require loan from the government at nominal interest. Banglacraft had issued separate letters to the concerned departments on 15th June demanding continuation of 20% cash assistance against export of handicrafts and 3% withholding tax on export subsidies. Banglacraft said that cash assistance contributes immensely to the survival in competitive market because entrepreneurs of small and medium industries are mainly involved in handicrafts
Handicrafts are produced fully from indigenous raw materials procured normally from rural environment. Marginal level people are directly involved in producing handicrafts. Handicrafts are about one hundred percent value added. As a result it contributes more to economy than import based exports. In order to provide policy benefits handicrafts have been included in the special development sector in export policy of 2018-19. There has been massive employment in this sector at rural level.
Banglacraft said that handicraft sector of Bangladesh has suffered a lot during corona pandemic but simultaneously there is a place of pleasure also. While export of other items has reduced in the world market, export market of handicrafts has increased because it is environment friendly. Despite the increased demand in world market buyers have reduced prices during corona period. Earlier profit was 10%- 15% but now it is only 3% - 5%. Although handicraft market has expanded at a rate of 15% - 20% over the years it has been disrupted during pandemic. In this situation reduction of cash assistance to 10% from 20% percent is a bolt for producers and exporters of handicrafts. As a result, exporters of handicrafts are facing huge adversity. If rate of cash assistance is enhanced volume of export will increase a lot. The letter further said that Bangladeshi entrepreneurs have to compete with China and India to survive in world market. For survival amount of cash assistance of 20% against export of handicrafts should be restored. According to Export Promotion Bureau (EPB) export earning of handicrafts during July to January 2020-21 stood at 19.6 million US dollar against 13.2 million US dollar in 2019-20 financial year. Rate of increase is 48.22%. In fiscal year 2019-20 and 2018-19 export earning of handicraft products of the country was 2 crore 5 lakh 20 thousand dollars and 1 crore 99 lakh 50 thousand dollars respectively.
According to Banglacraft handicrafts of Bangladesh are exported to 50 countries of the world including Japan, The United States, Germany, France, Holland, Belgium and Spain. During corona atmosphere European countries’ aversion to China and interest in using natural products has opened more opportunity for Bangladeshi handicrafts. At present European countries are the buyers of 80% of
Bangladeshi handicrafts that include hand-knit fabrics and carpets, home decor, terracotta and earthenware, jute products, baskets made of hogla leaves, bamboo and cane, floor and table mats or carpets, nakshikantha and nakshi bedsheets etc.
Government is trying its best to assist this sector in different ways. As per provision of paragraph 35 of 6th Schedule, part A of Income Tax Ordinance, 1984 income from export of handicrafts has been excluded from total income from July 2008 to June, 2024. In order to increase employment of skilled men and women handicrafters a project named Sheikh Hasina Nakshi Palli costing Tk. 722/- crore in Jamalpur was approved by ECNEC in March, 2019. But due to land complexity the project still stands stagnant.
In Bengali literature there is a masterpiece named Nakshi Kanthar Math (Field of the Embroidered Quilt, published in 1929) by Jasim Uddin. It is a tragic verse drama based on a real life folk tale and love affair between Rupa, a peasant youth and Saju, a village girl of Gafargaon, Mymensingh. However, situation of Bangladeshi nakshi kantha (handicraft in general) is not so bleak. Existing problems will be overcome through collective effort.
The writer is a former Commissioner of Taxes
