New Delhi, Oct. 10 Export Council for Handicrafts (EPCH) is adopting a three-pronged strategy, including capacity development, design enhancement and aggressive marketing, to boost exports.
The nodal export body for handicrafts has said that it is diversifying its export basket by tapping emerging markets such as Latin America and Africa, among others.
“We are moving from being a marketing agency to also undertaking capacity enhancement and product development as a part of our backward integration strategy. There is a need to develop a new product range of utilitarian handicraft items for the international market,” Mr Raj Kumar Malhotra of EPCH, told Business Line.
During FY07-08 and FY08-09, handicrafts exports had recorded a negative growth of 9 per cent. In fact, handicrafts exports started declining much before the global financial crisis erupted in the middle of 2008. Exports declined by 48.35 per cent to about $1.8 billion in 2008-09 and have contracted by 24.58 per cent to $789.30 million till August 2009.
Awareness schemes
He said EPCH is organising a number of awareness programmes on quality improvement for handicrafts, including technology upgrade workshops, packaging, ISO bar-coding, statutory compliance and quality control measures.
Mr Malhotra said the council is also setting up 25 common facility centres at important handicraft clusters. Besides, several new clusters are being provided the status of “town of excellence”.
Though a low-value portfolio in the country’s exports basket of $170 billion, handicrafts exports employ seven million people. Lakhs of artisans have been facing tough times due to a demand slump in major international markets.
Mr Malhotra said Indian handicraft exporters are gearing up to explore new markets in South Africa and Latin American.
Foreign Trade Policy boost
The Foreign Trade Policy of 2009-14 has also encouraged handicraft exporters in the direction of new markets. In the policy, provisions have been made to allow all handicraft exports to be considered as special focus products which attract an incentive of 5 per cent duty credit scrip.
Additionally, 52 items have been added in the special focus products, while the market-linked focus product scheme has been expanded to incentivise exports to Algeria, Egypt, South Africa and Brazil.
Source : Business Line