During the inauguration of the Dhaka International Trade Fair (DITF), Prime Minister Sheikh Hasina formally declared handicrafts as the product of the year. In her address, she emphasized the pivotal role of handicrafts in empowering women through employment generation. It aims to boost exports and broaden the country’s export portfolio beyond the dominant garments sector.
“I am announcing the handicrafts as the product of 2024 as has been playing a great role in women’s empowerment, making women economically self-reliant and generating employment for them.”
– Prime Minister Sheikh
According to a senior official from the commerce ministry, this decision aligns with the objectives of the Export Policy 2021-24, which seeks to designate a particular item as the ‘product of the year’ to enhance its global market presence.
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Dhaka’s handicrafts are now in the global market, especially since they have already grabbed the attention of the European market. Handicrafts, often hailed as a symbol of cultural heritage and craftsmanship, have recently surged into the spotlight in Bangladesh.
Bangladesh’s Diverse Handicraft Heritage
Bangladesh’s rich tradition of handicrafts encompasses a diverse array of artisanal creations, crafted by skilled individuals using simple tools. These include textiles, metalwork, jewelry, woodwork, cane and bamboo products, as well as clay and pottery items. Over time, materials such as jute and leather have also become integral to this craft tradition. From baskets to pottery, wall hangings to handbags, and embroidered quilts to carpets, the range of products reflects the depth of Bangladesh’s cultural heritage, with each item infused with the spirit of its makers. Today, Bangladesh’s handicraft sector has gained international recognition for its commitment to quality.
Aristaexport.com, Bangladesh’s premier B2B platform, hosts over 20 reputable handicraft suppliers who leverage its services to reach global markets. With a focus on safety and reliability, this platform facilitates seamless trade for both buyers and sellers. Handicraft products such as notebooks, jute crafts, terracotta items, clocks, wall hangings, and homemade crafts are among the most sought-after exports, catering to both international and domestic markets alike.
Bangladesh Handicrafts Export Scenario
The handicrafts sector of the country experienced a significant decline in export earnings in recent months, following substantial growth during the pandemic period. Bangladesh’s export of eco-friendly goods decreased by 32.14 percent in the first 11 months of fiscal year (FY) 2022-23, despite their significant popularity worldwide. Data from the Export Promotion Bureau (EPB) indicates that revenue from local handicraft businesses was US$ 26.84 million from July to May of FY 23, compared to $39.55 million during the same period in the previous FY.
However, Bangladesh witnessed notable growth in export earnings from the sector in the three fiscal years spanning from 2020 to 2022, with figures of $20.52 million, $33.97 million, and $42.83 million respectively, according to EPB statistics. Industry insiders attribute the recent decline to stiff competition from other nations, whose export activities were constrained during the pandemic, along with Bangladesh’s insufficient competitiveness.
During the pandemic, there was a notable preference for handicrafts, particularly those made from natural materials, especially in developed countries.
S U Haider, president of the trade body representing the sector, acknowledged the negative growth, citing Bangladesh’s decreased competitiveness as a primary factor. Regarding the growth during the pandemic, Mr. Haider noted that people showed a greater preference for natural items over synthetic ones, as COVID underscored the importance of nature for human well-being.
The sector currently benefits from a 10 percent cash incentive on export receipts, which was previously double before 2019. Bangladesh exports handicrafts to over 50 countries, including handmade garments and various household items made from natural materials like clay, jute, cane, and seaweed. During the pandemic, major handicraft exporters such as China, Vietnam, and India faced limitations in trade, providing an opportunity for Bangladesh to increase its global market share.
According to estimates by the International Market Analysis Research and Consulting Group, the global handicraft market reached $752.2 billion in 2022, with expectations of reaching $1,296.6 billion by 2028
However, as the situation returns to normal post-pandemic, these nations could regain their market share, while Bangladesh may lose its competitive edge.
Export Enhancement Strategies
To boost Bangladesh’s Handicrafts Export, several strategies can be implemented:
Market Research and Product Development: To conduct extensive market research to identify high-demand products globally. To invest in product development to align with trends and preferences.
Quality Assurance: To ensure stringent quality control measures to meet international standards. Certifications like ISO and Fair Trade can enhance credibility.
E-commerce Expansion: To capitalize on the booming e-commerce industry by establishing a strong online presence partnering with global platforms and optimizing digital marketing efforts.
Trade Shows and Exhibitions: To participate in international trade shows and exhibitions to showcase Bangladesh’s handicrafts. This provides exposure to potential buyers and fosters networking opportunities.
Government Support: To advocate for government initiatives such as subsidies, tax incentives, and export promotion schemes to facilitate growth in the handicrafts sector.
“We’re requesting the government to increase the sector’s competitiveness through different measures, including raising cash incentives.”
-S U Haider, President of Bangladesh Handicraft Manufacturers and Exporters Association
Skill Development: To invest in skill development programs to enhance artisans’ capabilities and foster innovation in craftsmanship.
Sustainable Practices: To embrace eco-friendly practices to appeal to conscientious consumers and comply with sustainable sourcing regulations.
Implementing these recommendations can elevate Bangladesh’s handicraft exports by tapping into new markets and improving competitiveness globally.
In conclusion, Prime Minister Sheikh Hasina’s declaration of handicrafts as the product of the year underscores their vital role in empowering women and diversifying Bangladesh’s export portfolio. Despite recent challenges, including a decline in exports, strategic measures can revitalize the sector, ensuring sustained growth and global competitiveness.
