The handicraft sector has been hamstrung by a shortage of raw materials resulting from the agitation in the Tarai and trade embargo by India. Exports have come to a complete halt, and handicraft makers have not been able to fulfil even domestic demand as they lack the necessary materials.

 

The country’s largest annual handicraft trade fair, Handicrafts Trade Fair 2015, which was slated to open at Bhrikuti Mandap Exhibition Hall on November 26, had been postponed due to the difficult times.

 

“More than 60 percent of the raw materials are imported from China, India and Singapore. All the shipments are stuck at Birgunj Customs or Kolkata port in India, and production has been hit as a result,” said Hem Ratna Shakya, president of the Federation of Handicrafts Association of Nepal. “The fuel crisis has also affected the production of handicrafts.”

 

According to the association, the country’s handicraft industry has an annual turnover of Rs8-10 billion, and 1.1 million people are directly or indirectly associated with the sector.

 

“Domestic sales and the international market have been growing, and many people are engaged in the handicraft business. Making handicrafts is their livelihood, and  the current slowdown has hit them heavily,” said Shakya.

 

He added that the handicraft industry could suffer severely if the suspension in the supply of raw materials continued. According to the association, around 50 percent of the handicrafts are sold during festivals like Dashain, Tihar and Christmas. Shakya said that traders didn’t have high hopes about sales this Christmas.