The Hindu Business Line : Handicrafts sector for Rs 1,000-cr corpus fund to tap exports

The handicrafts sector seeks creation of a corpus of Rs 1,000-crore fund for focused export foray of its products for augmenting its share in world market from the extant two per cent to four per cent in the short to medium-term.

In a recent presentation to the Ministry of Commerce and Industry, the Export Promotion Council for Handicrafts (EPCH) has put forth a package of measure to leverage India's inherent advantages in the handicrafts sector. These include, among others, setting up of common facility centres and technology upgradation centres, design services as per needs and requirements with the help of international designers on public-private partnership (PPP) model and focused commercial marketing intelligence on need basis on PPP model with the help of experts.

Exports figures

Currently exports of handicrafts constitute 0.40 per cent of the country' s exports and during 2005-06 the handicrafts exports clocked a relatively robust 9 per cent growth in dollar terms at $410.45 million, against $377.42 million in 2004-05.

Sources in the handicrafts segment told Business Line here that they are also keen on fostering specialised raw material banking, organisation of product specific shows such house as houseware and furniture, brand image promotion and certification.

Big show

They said that the council organised the biggest reverse buyer-seller meet under the Market Access Initiative (MAI) of the Department of Commerce this year, which included Indian Furnishing, Floorings and Textiles Expo, Indian Fashion Jewellery Accessories Show, Deco Fest India, International Stationery Paper Expo (STAPEX), Indian Furniture Show and Indian Houseware Show.

The sources said these shows generated business worth Rs 500 crore with over 500 manufacturers and suppliers from the US, Canada, Europe and Latin American countries taking keen interest, including companies such as Cosco, Urban Outfitters, Loblaw Stores, ROOTs, Kangaroo GMBH, Gunther Lambert and retail giants such as Carrefour and Target.

They said aggressive international marketing project for North-Eastern region under Export Development Fund (EDF) scheme of the Commerce Ministry by EPCH, launched in 2003, has been sosuccessful in availing itself of human resources development, design development, product development and international marketing that the council has extended the project for next three years.

Additional employment

Under this scheme, additional employment of over 1000 persons is created every year with export earnings of more than Rs 50 crore. The constraints plaguing this scheme include technology upgradation, packaging and transport subsidy.

The sources said that the council is currently implementing common facility centres and technology upgradation centre under the Assistance for State Infrastructure Development for Export (Aside) Scheme for two major wooden handicrafts pockets Saharanpur and Jodhpur, which registered export turnover of more than Rs 1000 crore in 2004-05. As manufacturers and exporters still use antiquated techniques, CFCs at Saharanpur and Jodhpur at Rs 111.70 lakh each with matching grant from the Commerce Ministry and Rs 463 lakh TUC at Saharanpur with matching grant are under way, while recurring expenses of these projects would be borne by EPCH.

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