Handicrafts boom in pandemic

While the fallout of the coronavirus pandemic has hit nearly every business sector in Bangladesh, handicrafts have continued faring well in the global market even with zero policy support.

With exports beginning in 1973, such products made entirely by manual procedures or by using only simple tools have come to create an international market of around $34 million.

Newly-born Bangladesh’s handicrafts industry could hardly fetch around Tk 3 crore as forex in 1973. Since then, the industry has been growing slowly but steadily.

Bangladesh’s exports earning from the handicraft goods rose sharply by 65 per cent to $34 million, defying the ongoing pandemic situation, according to the Export Promotion Bureau’s estimate of the fiscal year 2020-21.

It bagged $20.52 million in FY 2019-20 against the target of $21.32 million.

Apart from increased global demand for environment-friendly aesthetic craft items, relocation of sourcing from pandemic-hit China was a blessing for the Bangladeshi handicraft industry to grab more shares of the worldwide market.

In the wake of growing concern over the degrading environment among global citizens, Bangladesh handicraft products are gaining popularity as these are comparatively less costly, handmade and environment-friendly.

Bangladesh is currently exporting jute products, hogla products, bamboo products, cane products, water hyacinth products, rugs, seagrass baskets, Thypha, Kaisa, pottery, weaving, muslin and jamdani in the global market.

Some special products, including baskets made of hogla leaves, cane and jute, terracotta and Shotoronji, contributed a lot to increasing handicrafts’ export earnings and cottage industries during the pandemic.

Nearly 72 Bangladeshi companies are now exporting their handmade products to about 60 countries, including the US, Canada, England, Russia, Germany, Italy, France, Spain, Finland, Turkey, Japan, Denmark, South Africa and Greece.

Among others, Karupannya Rangpur Ltd, Classical Handmade Products BD, BD Creation, San Trade, Dhaka Handicrafts Ltd and Taurus Limited are the major exporters of handicrafts made in Bangladesh.

Karupannya Rangpur Ltd alone exported handicrafts worth $25 million in FY 2020-21, according to the data of Bangladesh Handicrafts Manufacturers and Exporters Association, commonly known as Banglacraft.

Dhaka Handicrafts Ltd exported handicrafts worth $1.5 million in FY 2019-20 and $0.8 million in FY 2017-18. San Trade exported $0.97 million in FY 2019-20 while $0.7 million in FY 2017-18. Taurus Limited exported jute handicrafts worth $0.26 million in FY 2019-20 and $0.15 million in FY 2017-18, Banglacraft data show.

Shafiqul Alam Selim, the proprietor of Karupannya Rangpur Ltd, said, “The business is growing day by day along with the increased demand for such handicrafts following the growing global environmental concern. That’s why there is always an ample opportunity to explore more from this potential sector.”

Echoing the proprietor of Karupannya Rangpur Ltd, Senior Vice-President of Banglacraft Shahid Hossain Shamim said, “Handicrafts are gaining popularity worldwide as the people are now more sensible on environmental safety issues.”

“Recently, Bangladeshi handicrafts products are mostly imported to the European and American market as people from those countries are now busy with their home decoration mostly during their stay-at-home due to the ongoing pandemic,” he added.

Pandemic pushes down local demand

The sector, employing nearly 50 lakh people, has an annual turnover of Tk 15,000-16,000 crore, according to Banglacraft.

The local demand dropped soon after Covid-19 hit the country. Local entrepreneurs have suffered a lot as they had to shut their shops and shopping malls.

Apart from that, they had to close their production to ensure social distance and health protocols. Many small and medium enterprises were closed, failing to earn profits.

Pijush Bhadra, the proprietor of Sajoa textile, said, “As we sell most of our products in the domestic market, our sales drop significantly due to the covid-19 outbreak.”

“Normally, we used to sell nearly Tk 70,000 per month which has dropped to only Tk 20,000 during the pandemic. We could not do well during the pandemic as we are dependent on the local market.

Business growing faster using tech

The handicrafts business is now growing faster than ever by using available digital technology. The online handicrafts business had increased significantly, mainly after the imposition of strict restrictions or lockdowns to contain the spread of the virus.

Jerina Haque, an entrepreneur from Mirsarai of Chottogram, said, “I had to struggle a lot at the beginning of my business as it was tough for me to reach potential buyers. But when I began to operate my business using social networks such as Facebook, I started to receive phone calls from the buyers.”

Ashika Akter, another entrepreneur from Sarishabari, Jamalpur, said, “As I have no shop to sell my handicrafts product, I am completely reliant on social media platforms. My products worth nearly Tk 50,000 are being sold annually. The sale is increasing day by day as I am receiving many more orders through Facebook.”

Rodela Afrin from Savar said, “I am receiving around 100 to 150 orders every month online and we are also doing well even during the pandemic thanks to our online business.”

Women empowerment

The country’s handicrafts sector has empowered women and created jobs for the deprived and underprivileged women. Around 60 per cent of the total workforce are destitute women.

Many of them have become self-sufficient in cottage industries while many women have become entrepreneurs. Housewives, widows, psychically challenged women and even students are involved in this industry. Many women directly support their family members while others bear the whole family with their income.

Tania Hasan, a housewife from Pangsha Rajbari, said, “I started my business soon after Covid-19 outbreak. I am receiving orders worth Tk 20,000 each month. Now, I can also support my family with my income. I feel quite happy now as I also think that I am no longer unemployed.”

Sumaiya Akter, a college student from Jamalpur, said, “My mother had started her entrepreneurship called Jhorna Handicrafts in 2007 while my father was involved in jute business.”

“Now, my father joined my mother’s business as it is doing well even after the pandemic. Nearly 5,000 people have already been employed in our 35 outlets where most of them are women. As my college is closed now because of the pandemic, I am now operating this business using the online platform,” she added.

AIUB student Ashika Akter said, “I have come to this sector as part of my hobby. But, now I am planning to become an entrepreneur as demands for handicrafts products are growing fast in the local and global markets.”

Lutfar Naher Mukta, the proprietor of Saba Handicrafts in Jashore, said, “I am planning to set up a factory in Jashore as I have already received enough orders from the clients. Initially, I was thinking of getting a job in any sector, but now I plan to become a well-established entrepreneur in the handicrafts sector in Bangladesh.”

Raw materials crisis

However, sector insiders say that Bangladesh’s handicraft industry cannot flourish as expected due to a lack of policy support.

They mentioned that the local industry cannot compete in the international market without the required raw materials, adequate artisans, essential design development mechanisms, research works, infrastructures, and so forth.

The prices of the raw materials have gone up as the cultivation of bamboo, canes and flax has declined in the country while raw materials are being widely cultivated in competitive countries.

As Bangladesh mostly depends on natural raw materials, the quality of raw materials is being affected due to natural calamities such as heavy rainfall and drought.

On the other hand, the entrepreneurs have to pay much import duty while importing some raw materials.

Entrepreneurs said they cannot provide timely products due to a lack of raw material.

They also noted that the country has no sustainable plan to ensure raw materials around the year.

Shahid Hossain Shamim, vice-president of Banglacraft, said, “While our competitive countries are moving forward to cultivate raw materials on a large scale, we have no visible initiative to meet our raw materials demand.”

“Even the farmers are offered incentives in Vietnam who cultivate raw materials. Bangladesh must ensure raw materials at competitive prices to do much better in the global competitive market.”

“Normally, I used to sell Tk 3,00,000 per month while I sold only Tk 20,000 to Tk 50,000 in the pandemic period. Though I have foreign clients, still I cannot supply products as per their requirements due to a lack of raw materials. On the other hand, we have to pay too much duty to import the necessary raw materials,” said Kazi Shahab Uddin, owner of Uttaran Enterprise.

Md Shah Jalal, secretary of Banglacraft, said, “The competitive countries are doing very well as they are offering incentives and training their entrepreneurs.”

“Bangladesh also needs to increase incentives in this promising sector. But we have seen our incentives decline from 20 per cent to 10 per cent.”

Md Shah Jalal said, “We lack policy support in this sector. We don’t have enough design, training and there is no craft village which we have been demanding for the last 30 years. We don’t want any financial help or assistance from the government.

Rather we do need sufficient policy support which is being provided by our competitive countries like China, Vietnam, India, Indonesia and Thailand.”

Chairperson of Small and Medium Enterprise Foundation Dr Md Masudur Rahman said, “We have a lack of skilled workforce in the sector. But the situation is changing as we are offering training facilities to make skilled workforce. We will offer training to facilitate product development and diversification.”