Handicrafts export falls 32.14pc in July-May

The country's export earnings from the handicrafts sector registered a drastic fall in the recent months after massive growth during the pandemic period.

According to available data, Bangladesh's export of these eco-friendly goods dropped 32.14 per cent in the first 11 months of this fiscal year (FY), 2022-23, although these are getting huge popularity across the globe.

Statistics available with the Export Promotion Bureau (EPB) revealed that the local handicraft businesses fetched US$ 26.84 million in the July-May period of FY 23, which was $39.55 million in the corresponding period of the previous FY.

However, Bangladesh's export earnings from the sector registered sharp growth in the three fiscal years from 2020 to 2022, when the figure was $20.52 million, $33.97 million, and $42.83 million respectively, according to the EPB statistics.

Industry insiders said tough competition from other nations, whose export became limited during the pandemic, and the country's poor competitiveness are the key reasons behind the recent downfall.

During the pandemic period, people - especially in the developed countries - showed a special inclination towards handicrafts, mostly made of natural ingredients.

S U Haider, president of the trade-body representing the sector, told the FE that they are well aware of the negative growth, for which Bangladesh's lower competitiveness is one of the main reasons.

"We're requesting the government to increase the sector's competitiveness through different measures, including raising cash incentive," said Mr Haider, president of Bangladesh Handicraft Manufacturers and Exporters Association, commonly known as Banglacraft.

The sector currently enjoys 10 per cent cash incentive over export receipts, which was double before 2019.

Regarding the growth in the pandemic period, he said at that time people were more inclined to natural items than the synthetic ones, as Covid taught a lesson on the importance of nature for human beings.

According to sources, Bangladesh exports handicraft merchandises to over 50 countries. The sectoral export comprises handmade attires and various household items made of natural ingredients like clay, jute, cane and seaweed.

During the pandemic, the trade of major handicraft exporters like China, Vietnam and India became limited, which paved the way for Bangladesh to raise its export in the global market.

With the situation returning to normalcy after the pandemic, these nations could increase their stake, while Bangladesh lost its vantage point.

According to estimation of the International Market Analysis Research and Consulting Group, the global handicraft market size reached $752.2 billion in 2022. It is expected that the market size will rise to $1,296.6 billion by 2028.

Responding to a query, Mr Haider said: "We now seriously lack research and development, which is highly crucial for developing new and state-of-the-art products to strengthen global presence of Bangladesh's handicrafts."

Highlighting the sector's export earning potential, he opined that it could be one of the alternatives to the readymade garments sector, for which the government's policy support is highly necessary.

With the country's LDC graduation, the government should focus more on the small but potential sectors like handicrafts, he added.

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