Handicraft export from Bangladesh is facing several challenges. These constraints include a limited range of products, a lack of innovative designs, and a shortage of finance and technology. The lack of a well-equipped design center is a major drawback in production and innovation. Small entrepreneurs cannot meet the challenges posed by international competition because they lack the necessary tools. Here are some tips to boost the export of handicrafts from Bangladesh.
A number of constraints have been identified as the main obstacles to Bangladeshi handicraft exports. These include a lack of new designs and products, insufficient finance, and a lack of effective technology. However, the product variety is still huge despite the limitations mentioned above. This article will examine the main problems faced by the handicraft industry in Bangladesh and how they can be overcome. To help you develop a business in this field, read on to discover the best ways to grow it.
The products that are exported from Bangladesh are made from a wide range of materials. There is a huge demand for handicrafts in the world and in many countries. Some of these materials are jute, bamboo, and carpet. Bamboo products are among the oldest handicrafts in Bangladesh and were once used by separate communities for domestic purposes. However, the world market for these products is estimated at $100 billion.
Although the sector has not been organized for decades, it has gained significant market share in recent years.
Some traditional handicrafts such as block-printed textiles, vegetable dyed textiles, artificial flowers, woven jute, and cane basketry have a great deal of potential for growth. Small leather goods are also worth considering, as they can command a greater share of their target markets. And, if you are a small business or an individual looking to start a new venture, the benefits of exporting handmade products from Bangladesh are numerous.
The most popular handicrafts from Bangladesh are ceramics, woodwork, cotton, silk, leather, silver, gold, cane, and bamboo. There are also a variety of metal crafts. In addition to metal and ceramic, there are a number of traditional handicrafts made from cotton, silk, and jute. Handmade goods are also sold by small cottage industries. A variety of designs and materials makes this region a great destination for handicraft exports.
Several factors constrain the product range of handicrafts exported from Bangladesh. The most prominent constraints include a narrow product range, lack of innovative designs, and inadequate communication facilities. Furthermore, the industry lacks adequate infrastructure and technology for producing in large volumes. These limitations are likely to hinder the growth of handicraft export from Bangladesh. The country’s handicraft sector has tremendous potential to meet the needs of the global market.
The country’s handicraft exports include many types of baskets, rugs, boxes, trays, furniture, and Christmas decorations. Baskets made of jute, water hyacinth, and sea grass are some of the most popular products. These items can be used for laundry, storage, and organization, as well as for decoration. Many types of baskets are made of various materials, including plastic and bamboo.
The HS-defined categories are too broad to include handmade products that use natural materials.
The EU market for basketry and handwoven rugs was worth over EUR400 million in 2016 alone. Even though Bangladesh’s small and medium-sized enterprises (SMEs) hold a small portion of this market, they are rapidly increasing their share in this sector. The demand for these products is high and growing. There are many benefits for the country’s rural population.
The Government of Bangladesh has set an encouraging macroeconomic context for the handicraft industry. Its GDP has risen over 5% over the past several years. In the medium term, Bangladesh’s prospects are bright as the country has recently been categorized as a lower-middle income country and is on track to graduate from the list of Least Developed Countries by 2024. So, it’s time to focus on upgrading the HDHT handicraft sector and increasing the income of rural women in the process.
Impact of natural raw materials on handicraft export from Bangladesh
The lack of adequate policy support has impacted the development of the country’s handicraft industry. Despite increasing demand for handicraft products worldwide, Bangladesh’s export volume has remained stagnant for years. Without adequate natural raw materials, skilled artisans, design development mechanisms, and infrastructure, the country is unable to compete in the global marketplace. According to Golam Ahsan, president of the Bangladesh Handicraft Manufacturers and Exporters Association, “The handicraft industry in Bangladesh is facing a number of challenges, including the impact of the Covid-19 pandemic.”
Agricultural producers are facing severe crop damage, with seagrass and jute harvesting being affected by floods. The price of these materials has increased by 30 to 40%, depending on the location, said Golam Ahsan, president of the Bangladesh Handicraft Manufacturers and Exporters Association. Meanwhile, the government is increasing the number of loans for a single importer. The government also partnered with the Bangladesh Textile Manufacturers Association (BTMA) to establish a national institute for textile training and research. It also provides incentives to shipbuilding, frozen food, and the IT industry.
The demand for handicrafts has increased since the 1970s when they were first introduced and were accepted by the public.
However, during the early years, they were not widely accepted due to poor quality and unattractive design. Today, however, people are increasingly conscious of the environment and prefer eco-friendly products over those made from artificial materials. Furthermore, handicrafts from Bangladesh have a significant role in the domestic supply and export of goods.
Lack of data is a significant problem in assessing the impact of natural raw materials on the handicraft sector. Without data, it is difficult to develop policies that promote the handicraft sector. Moreover, the informal nature of handicrafts makes it difficult to collect data on the sector. Therefore, it is imperative that the government collects and compiles relevant data in a timely manner to ensure that policies and actions are appropriate for the country’s handicrafts industry.
Importance of infrastructure
The handicraft industry of Bangladesh has a good potential to be an exporter of fine products. The country is rich in craft raw materials, and it can produce various products that are highly valued by global consumers. However, the country lacks the infrastructure and technology needed for thriving export business. In addition, the country does not have the necessary communication facilities and is not sufficiently equipped to meet the needs of a diverse global market.
The Generalized System of Preferences gives preferential treatment to Bangladeshi handicrafts in the American and European markets. Although it is unlikely that it will continue in the future, this tariff preference will ensure that the country’s export-oriented handicrafts remain competitive. Additionally, cash incentives are available for some handicrafts to facilitate their export. This incentive is an excellent stimulus for handicraft exports.
In addition to supporting designers, manufacturers, and exporters, the country must develop a national handicraft industry-related infrastructure.
The handicraft sector in Bangladesh lacks a coherent national policy and institutional support. The country’s Small and Cottage Industries Corporation (BSCIC) is only in a position to provide limited support services, such as design improvement. Furthermore, it is important to create a market-oriented infrastructure for handicrafts to ensure their continued growth and sustainability.
Handicraft exports from Bangladesh could help reduce migration from rural areas and improve the standard of living for millions of people. The government could also support the establishment of a separate industrial park near the capital city of Dhaka to facilitate the production of raw materials used in handicrafts. Moreover, a separate policy should promote the development of the country’s tourism industry. In the meantime, a thriving handicraft sector would help reduce the migration of rural people to urban areas.