Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu

CHAPTER -1
1. INTRODUCTION OF EXPORT & PROMOTION OF HANDICRAFT
GOODS
1.1 BACKGROUND OF THE STUDY
Handicrafts are those objects, which require skill with hands, or in other words
they are man- made. Basically, a product solely made by human hands without using
any kind of complicated machinery or equipment is called handicraft. A simple
dictionary meaning of handicraft is an art or craft needing skill with the hands. !t is
the practice of making decorati"e of functional objects, wholly or partly by hand, and
requiring both manual and artistic skill.
Handicraft is the occupation of making by hands usable products graced with "isual
appeal. Handicraft includes such acti"ities as needle work, lace- making, wea"ing,
printed te#tile decoration, basketry, pottery, ornamental, metal working, jeweler,
leather working and wood working and such crafts as glass blowing and the making
of stain-glass that requires comple# facilities
Handicraft is the method of doing or constructing an object or de"ice usually by hands
and with nati"e materials. A term that seems to combine arts and crafts is known as
handicraft.
According to the definition formulation by $%&'A, the term handmade article
reflects to the articles or the group of articles which is being produced mainly with the
help of these tools or instruments, are used by the artisans in making handicraft goods
which are of simple kind and which are used by the help of artisans hand or feet, can
be called handicraft
'herefore, we can say that handicraft is an occupation that in"ol"es making usable or
decorati"e products by hand. (or e#ample, origami )*apanese+ for paper folding,
de"eloped in *apan, origami is the art of making creating different kinds of objects by
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Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
folding a sheet of paper. 'hey created forms range from simple figures to comple#
designs complete with mo"ing parts. -riginally used for ceremonial purposes. 'oday,
origami is handicraft-enjoyed worldwide. !t has been popular especially as an art from
and a hobby in .pain and /atin America.
1.1.1 NEPALESE HANDICRAFT PRODUCTS
a. 0ooden 1 paper based products2-
Bamboo products, cane furniture, wooden bo#es, wooden praying wheel, wooden
musical instruments, handmade paper, paper products, paper masks.
b. 3etal Based 4roducts2-
3etal statues, 3etal car"ing, 3etal sou"enirs, metal bells, %epali 5hukuri
)%epali knife+, filigree production6 inlay works, metal utensils, metal embossed
medallions, gold7sil"er jewelers, brass7brone wares.
c. 8arthen Based 4roducts2-
.tone car"ing, stone sculptures, ceramic figure, clay or ceramic potteries, precious
stone, semi precious stone, brick, tiles and slates.
d. 0oolen and &otton Based 4roducts2-
5not crafts, 5nit ware, 'e#tiles, 4ashmina .hawls, &otton 4roducts, 'raditional
and (ashion garments, hand knotted carpets, Batiks, 'hankas)4ubha+, woolen mat,
0oolen blankets, 9olls, %epali caps.
e. Animal Based 4roducts2-
Bone a dhorn products, leather goods, stuff dolls.
f. Agro and %atural 4lant based 4roducts2-
Hemp cloth products, silk boutiques, %atural fiber products, *ute products, incense
sticks.
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Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
1.1.2 EXPORT PROCEDURE OF HANDICRAFTS
a. An e#porter should ha"e2
,. ;egistration of firm7company7industry
:. ;egistration in local ta# office
<. &urrent account in &ommercial Banks
b. An e#porter order could be effected2
,. !f a letter of credit is opened of the e#porter=s name
:. Ad"ance payment is deposited in con"ertible currency in the e#porters
bank account or
<. .amples, up to the "alue of $. dollar ,>? could be e#ported without
the condition state in : a and b.
c. 9ocument required for the e#port2
,. &ommercial in"oice certified by Handicraft Association of %epal
:. 4acking list
<. &ertificate of origin
@. %epal ;astra Bank declaration form
>. &ertificate from Handicraft Association of %epal
A. Ad"ance payment or letter of credit
B. AuthoriCation letter
D. Ac copy of firm registration7 income ta# registration
E. A copy of customs agent registration
,?. F 3useum pass certificate
,,. F G...4. from A
,:. %- objection letter from HA% for products made from parts of
domestic animals.
,<. F ;ecommendation letter from 9epartment of (orestry for some
forestry products.
,@. F ;ecommendation letter from 9epartment of mines for some for
mineral products.
%ote2 F !f applicable. 9ocument requirement for e#port could "ary with nature of
handicrafts products.
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Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
1.1.3 EXPORT POLICY
Go"ernment makes policies for the betterment of the rele"ant issues. 8#port policy of
%epal states as following for the promotion of the e#port position of the country.
'he production and quality of e#portable products will be raised to make competiti"e
in the international market.
%ecessary efforts will be made to increase and di"ersify of goods and ser"ices with
objecti"e of increasing foreign e#change earnings.
8#ports will be promoted by rising the producing and quality of traditional as well as
new products, new markets will be identified.
(oreign e#change earning will be increased and identifying and increasing the
production of new products will create opportunities for, gainful employment.
.er"ices oriented acti"ities will be gi"en to the e#port of hydro electricity on a
profitable basis.
(or the effecti"e utiliCation of manpower, stress will be gi"en to the de"elopment of
appropriate and potential skill to promote ser"ice sector as well as e#port of skilled
manpower in an organiCed way.
Appropriate monetary, foreign e#change and fiscal policies will be formulated and
necessary changes will be made in the administration procedures to make them
liberal, simple and dynamic in order to implement abo"e policies on an efficient,
smooth and transparent basis.
1.1.4 LIST OF QUANTITATIVELY RESTRICTED AND BANNED
ITEMS FOR EXPORT !"#$%!"#$&'# $()*"+,(-#./
A. 4roducts banned for e#port
,. A,#"+01. &- A,+$(1&0&2"+(0 ()* R10"2"&'. I34&,#()+1.
%ational and foreign coins of archeological "alue
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Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
!dols of God and Goddesses, palm leaf, inscription)tad patra+, plant lea
inscription)Bhoj patra+
.croll )'hanka paintings of historical importance+
2. C&).1,51* !"0*0"-1 ()* ,10(#1* (,#"+01.
Bile and any part of wild animals
3usk
.nake skin, liCard skin
3. D,'2.
3arijuana, opium, hashish)as defined in the single con"ection of
%arcotics ,EA,+
4. A,#"+01. &- I)*'.#,"(0 I34&,#()+1
8#plosi"e materials and fur or materials needed there fore.
3aterial used in the production of arms and ammunition.
6. I)*'.#,"1.%R(! 3(#1,"(0.
;aw materials and skin )including dry salted+
;aw wool
All imported raw materials, parts and capital goods.
7. O#$1, 4,&*'+#.
3amira
/og and timber
B. 4roduct under Huantitati"e ;estriction
4roducts as notified by H3G in %epal GaCette time to time.
&. 4roducts allowed for the free e#ports2
All products other than banned ones and under quantitati"e restrictions.
1.1.6 MOST OF THE EXPORTABLE ITEMS OF NEPAL
A. 3etal statues, filigree goods and utensils
!cons based Buddhism and Hinduism made of copper, bronCe, sil"er and gold
as basic raw materials with chisel works.
9ecorati"e Articles
$tensils and Garden Articles made through hammering and costing such as
flower "ase, singing bowls, bell, cymbal, wine jars, cups and etc.
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Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
B. Gold jewelleries, sil"er jewelleries and filigree goods
-rnaments made of yellow gold with or without stone )precious and semi
precious+.
-rnaments and other articles such as earrings, studs, rings, bracelets, pendant,
bangle, necklace, timely utensils, curly statues and etc with or without semi
precious stone with minimum E:.>I purity.
9ecorati"e articles such as animal birds charm bo#es and etc made with
intricate wire works and studded with precious a semi precious stones.
&. %epalese papers and matches Good
4roduct made of hand made paper lokta)dapne, payracea of thymalaeacac
family+ such as stationery, lampshade, wallpaper warping paper, bags and
shopping bags and etc
Handmade paper matches- Articles such as masks, decorati"e items made of
clay, paper etc.
9. 0ooden crafts
4roducts produced by hand cra"ing with the "arious types of
wood such as door panels figure of God and Goddess, ;eplicas of famous
windows, imitation of temples of monuments, furniture, many more
decorati"e utility articles and etc.
8. -ther handicrafts goods
!ncense2 3any "arieties of incense products.
Bead works2 -rnaments, decorati"e articles and etc. made of glass beads
ceramic goods glaCed and non- glaCed earthenware.
Bone and Horn goods2 Buttons, decorati"e items and etc
Hand &rafted2 9olls and puppets of %epalese &ulture mind of cloths, clay and
woods
Hand painted thangkas2 .acred scroll hand painting on cloths or paper based
on Buddhist and Hindu religious scriptures
A
Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
3ithila Arts2 4roduct based on the motifs of 3ithila culture)from *anakpur
9istrict+ such as ceramics, handmade paper wall hanging
.tones &rafts2 !cons statues and decorati"e and utility products cra"ed and
made of stone
4recious and .emiprecious stones2 cut7uncut stones such as garnet, lapis,
topa#, ony#, moonstone, agate, *ada
%epalese musical instruments2 %epalese ethnic7modern cultural musical items
such as 9rum, 3adal, 'abala, 'rumped
(olklore=s Goods73iscellaneous goods
(. 0oolen Garments and Accessories
Articles made of hand knitted such as pullo"ers, sweaters, cardigans, mufflers,
socks, leg warmers, caps
Articles made of woolen fibers such as garments and accessories
Articles made of 4ashmina )fine goat hair from high mountains only+ such as
shawls, mufflers, stoles, sweaters, garments and other accessories.
Articles made of facet such as slippers , bags, hats
G. &ottons7;ayon Garments and Accessories
Articles made of cotton7;ayon fabric such as ethnic7fashionable garments
H. -ther Garments and Accessories
%atural fiber garment and accessories2
Articles made of hemp, nettle and other natural fibers such as garments and
accessories
.ilk garment and accessories2
3odern, high quality, designed, fashioned garments and other articles of
4ursilk
(ancy garments, accessories and boutiques2
3odern, high quality, designed, fashioned garments specialiCed garments and
accessories.
!. &arpets
Hank knotted woolen carpets.
B
Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
1.2 STATEMENT OF PROBLEM
3ost of the goods are produced in their own traditional way as all the goods
are produced by indi"idual hands, it has "ery slow production. 'he goods can not be
fulfilled in time. !t is a most laborious work. !n fact, there is no "alue of the raw
materials in comparison to the labor it takes, though this is a handicraft industry, more
than >?I work should ha"e been performed through labor sa"ing de"ices.
'here are many middlemen in the business of handicraft goods. 'he actual
producers can not sell it either locally or e#port due to lack of capital and the business
knowledge. 9ouble and 'riple benefits are raised by the middlemen. 'hese
middlemen purchase goods from the producers at "ery low price and sell it to the
local dealers and e#porters sell these goods at "ery good margin of profits. 'he
middlemen who do not enter in the hard and complicated work of its production are
rich. 'hey li"e in the modern sophisticated buildings, whereas the actual producers,
the artists can hardly maintain their li"ing.
9ue to the abo"e causes, the producers are much e#ploited despite their hard
labor. 'here is finishing problems also on these products. 'he finishing methods also
are in the same traditional form as is in its production. As finishing is "ery poor,
rough and filthy, many foreigners do not like the finish through they like the goods
are perfect and well finished.
(rom abo"e we find the main problems for handicraft business are as follows2
'he e#port of %epalese handicraft is not smooth.
8#porters are not getting pre-e#port loan, which need to middle a"ailable for
promotion of e#port trade.
1.3 OB8ECTIVE OF STUDY
Handicrafts ha"e long been a major line of %epalese ecports. !t is a major
source of foreign currency. %epalese handicrafts are e#ported to o"er >? countries,
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Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
spread all o"er the world. 3any studies research regarding the e#port of these
handicrafts ha"e been done but still the e#port of metal crafts to o"erseas countries
has drawn little attention of the researchers. 'herefore, the basic objecti"es of the
study are2
'o e#amine the e#isting e#port trend of %epalese handicraft products.
'o identify problems regarding its long term e#port growth.
'o identify the e#portable handicraft goods.
1.4 SIGNIFICANCE OF THE STUDY
'his fieldwork assignment report has been prepared in partial fulfillment of
the requirement for the degree of Bachelor Business .tudies. 'his report helps to
e#pose the theoretical work into practical work. !t is original work and it will help for
the researchers to study about the handicraft project.
Handicraft is one of the most traditional e#porting goods of %epal which constitutes
relati"ely small but important portion of the total %epalese e#port. %epalese
handicraft industry has its own "alue and position in the economical status, in
comparison to other trades in our country. 'herefore, the e#port of handicrafts
materials is of greater importance.
Although the "olume of e#port in monetary terms, at that period was limited
the "alues o f this industry were and are of multiple dimensions. !t has helped to
re"i"e traditional skills and crafts and increase areas of income for craftsman. !t is
with greater pleasure that to day one sees hundreds of crafts families thri"e as
successful traders and e#porter, e#panding into new business. 3ost newly erected
modern building that has sprouted ! 4atan today belongs to the newly emerged such
craft families. 'his industrial is also an important element for promotion of tourism
and helps reduce the deficit of trade.
.o far, these %epalese handicrafts ha"e recei"ed good response from
importing countries and with other de"elopment in designs and achie"ing economics
in production it can be great importance to the national economy or say, to the e#port
trade horiCon to bridge the gap in the balance of trade situation.
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Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
'his study will benefit the promotion of handicrafts in our country and it will gi"e a
side "iew to the national planners as well as businessman and common people.
1.6 LIMITATION OF THE STUDY
'he areas of the study were limited7restricted only to 5athmandu "alley,
whereas main craftsman and producers are in 4atan and Bhaktapur. 'his study deals
with the condition of handicrafts industry in %epal and e#port of its products. 3ajor
limitations are as follows6
'his study doesn=t relate to domestic sales and market but deals only with the
o"erseas e#port and promotional aspects.
8conomic and 4olitical influences are ignored while making this report.
'he detail analysis of performance, acti"ities are incon"enient due to lack of
time frame structure.
!t was not con"enient to get the adequate information from the personnel due
to busy in their respecti"e work.
-"erall study of handicraft products ha"e not been done, only one topic which
is e#port and promotion, is done for con"enient.
0hile computing the data, the decimal "alue has been ignored for sampling
calculation.
1.7 CHAPTER SCHEME
'his fieldwork report entitled JA study on 8#port and 4romotion of Handicrafts
goods= is a descripti"e study. 'he field study report has been di"ided into four
sequential chapters along with bibliography

'he first chapter of this report contains the general background of the project,
introduction of the handicrafts products, e#port procedure of handicrafts, e#port
policy, list of the products that are quantitati"ely restricted and banned, list of the
most of the e#portable items of %epal, -bjecti"es of study, significance of the study,
limitation of the study.
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Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
!n :
nd
chapter it contains research methodology that research design, source of data,
data processing technique and tools used for analysis of data
'he ne#t chapter of this report consists of data presentation and analysis. !n this
chapter, the data related to different handicraft products at different time inter"als are
shown and are presented in tabular and graphic form and are analyCed by using
different statistical tools and comparati"e study is done.
'he last chapter deals with summary, conclusion and recommendation. 'he
conclusion is drawn form the analysis made in chapter three and consequences are
summariCed .'he possible suggestions are also mentioned for the better promotion of
%epalese handicraft.
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Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
CHAPTER 2
RESEARCH METHODOLOGY
0hile writing any kinds of assignment, different kinds of research are to be
done in particular subject. !n the course of in"estigation, "arious types of tools are
used for better result. .o, different measures are taken as steps for achie"ing the target
of the study on e#port and promotion of handicraft products.
2.1 RESEARCH DESIGN
;esearch as a systematic method and most appro"ed method in finding out solution to
a problem will not only get knowledge but gain practical e#perience in flashing the
position of any firm in the future. !t is not only opportunity for fulfilling the partial
requirement for '.$ but also to introduce with the higher personnel and to know the
technique used in operating the firm. .o research design is the first attempt to find out
the solution of the problems by using "arious statistical and financial tools that is
applied according to the nature of the problem. ;esearch design is the plan for writing
report on any typical subject for analyCing the firm=s ability.
2.2 DATA COLLECTION9-
-ne of the most important tasks is to collect needed data for analyCing and presenting
at correctly. 9ata can be collected by the way of "isiting into relati"e institutions.
9ata can be di"ided into two parts as 4rimary and .econdary.
P,"3(,: D(#(9
9ata are collected through remark from staff member and personal )face to face+
question. .uch data are used in the methodical part where the primary information
is required. 3ajor focus was gi"en in the company=s quarterly issued journals.
&onsultations were taken with the staff and other related participants to ha"e
chronological and as far as correct information.
S1+&)*(,: D(#(9
9ata from once a year report, bulletins, companies= brochure, different documents
magaCines etc. that are with authoriCation published. 'hese data are mainly
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Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
purposed for mathematical in"estigation. $sed of real and correct data make the
calculations correct as far as possible.
'he secondary data were collected as2-
(%&&!
HA%
'rade bulletins, libraries, brochures, newsletters, publications
3ore o"er it includes some data generated by other writers and researchers.
2.3 DATA PROCESSING TECHNIQUES
'he data collected from the abo"e stated sources has been classified
tabulated and interpreted for easier study.
C0(.."-"+(#"&) ()* T(;'0(#"&) &- D(#(
'he data collected are classified tabulated and arranged in a manner
to make it easily understandable with the use of tables in a chronological
order. After classification the data is tabulated.
D"(2,(33(#"+ R14,1.1)#(#"&) &- D(#(
Karious diagrams are used to present the data more clearly. 'he
diagrams used are as follows2
4ie &hart
.imple-bar diagram
3ultiple bar diagram
2.4 TOOLS USED FOR ANALYSIS OF DATA
T,1)* 0")1.9
Lc M aN b#
0here, yc M computed "alue of y )i.e. "ariable+
a M "alue of y
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Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
bM slope of trend line or amount of change that comes in y for a unit change
in O )i.e. time+
CHAPTER- 3
PRESENTATION AND ANALYSIS OF DATA
3.1 PRESENTATION OF DATA
'he basic purpose of this study is to e"aluate the performance of all type of
handicraft in the total e#port of %epal. 'he data follows figure and analysis
respecti"ely.
3.1.1 FIVE YEARS EXPORT OF H ANDICRAFTS
T(;01 1
FIVE YEARS EXPORT OF H ANDICRAFTS
S.N. P,&*'+#. 2<74=76 2<76=77 2<77=7> 2<7>=7? 2<7?=7@
, 4ashmina >A@<A:EE:
A
,@,:DBB<,
:
EDEDEBDA? AA,<B<D<: B??B?,?<>
: 0oolen goods :@<EA,@<: :?BDA<,<E :BBE<B?@< @<::?<@B, >>>,D:BEB
< .il"er
jewellery
::>E,A>@A :D<:EE>B< <><?>EE:@ <AB@ED:@A <BB@@D:AA
@ 3etal crafts ::A?@DB,E :A:B?D:DB :BA:<D?E? :E<?A>B<< <B<?,?:EB
> Handmade
papers
:?><BE@A :@:D>E<EB :B><B@B?< <?,B:>?@> :A:BA@:B@
A Hemo7allo
goods
:D?<@><@ :BD:,B:? @<AB>?BE @>:>A:A< A:?D:?:<
B .ilk products AB,DD>:E <@@E>?E@ @,@DE,?: ,<:<><:? ,:E?D@::,
,@
Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
D &otton goods :@<,AAD, B,:?<<B, EA,EEA<, ,,<B:?B?, ,,?BAE>E>
E -ther te#tile
product
,,B@D<>> ,?,@:,B> B?EB<>? D@@?>DE
,? 9haka product @DB><,A? <EE,,D: @EE><>: <<B?:::
,, 0ood crafts ,:D><:@E @<A<,@? >A:,,B:A AEDD,A,? D?D:@??,
,: 4aubha)thanka+ ,<>D<>EE ,B>@<>:E ,>BA,E<> ,>??,>>B :,??E,?D
,< Bone 1 home
products
B@,ABA: ,,:BB:E, ,:<?DD@> ,?AE,:<A ,@EBAAE<
,@ &eramics
products
,:,B<,<E EBBE,?D ,>EB?A,> ,@DA@@:? ,DB,AD<:
,> !ncense :@>><AD: ,@,B@,@: ,A>?:>:< ,D<?D<>A :?>E,>BE
,A /eather goods DD?:A?A ><,E?DDE :@D>?:DD :<A,?>?: :>D,,A,D
,B Beads items ,::?:>> B<AE@?> B?EE,A? A?:AA,A BEAB,B<
,D Bamboo
product
,AEA@<: ,BAD>B@ :@DBD:A :E,D><A
,E .tone craft <?<:,DA <A,AB>@ <@>DB?? <<B:E@,
:? 4lastic items ,,<?<:, ,D><E@: B@><,,E D><?A<@
:, 'ea ,D>A@?> @>AA<>,
:: 3iscellaneous
crafts
:<,D@,?< :?:?<BEE :B,@AEDB <A,EED,E A?E?:E?>
T&#(0 7?23172>@
3
2>1@7374@
<
2662@6264
3
26>1?4142
3
2?4@4>734<

,>
Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
F"2',1 1
FIVE YEARS EXPORT OF H ANDICRAFTS
3.1.2 FIVE YEARS EXPORT OF H ANDICRAFTS
TOTAL HANDICRAFTS EXPORT 2<74=76 A 2<7?=7@/
T(;01 2
,A
Yearly Comparison
0
2000000000
4000000000
6000000000
8000000000
10000000000
12000000000
14000000000
16000000000
2
0
6
8
/
6
9
2
0
6
4
/
6
5
2
0
6
5
/
6
6
2
0
6
6
/
6
7
2
0
6
7
/
6
8
Year
R
s
.
Pashmina Woolen goods
Silver jewellery Meal !ra"s
#andmande $a$ers #emo%allo goods
Sil& $rod'!s (oon goods
)her e*ile $rod'! +ha&a $rod'!
Wood !ra"s Pa',ha-han&a.
/one 0 home $rod'!s (erami!s $rod'!s
1n!ense 2eaher goods
/eads iems /am,oo $rod'!
Sone !ra" Plasi! iems
3ea Mis!ellaneo's !ra"s
3oal
Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
EB4&,# &- H()*"+,(-# G&&*. 2<74=76 A 2<7?=7@/
F".+(0 Y1(, EB4&,# F"2',1 ") R..
:?A@PA> AD:<,A:BE<
:?A>PAA :B,EA<A@E?
:?AAPAB :>>:E>:>@<
:?ABPAD :>B,D@,@:<
:?ADPAE :D@E@BA<@?
F"2',1 2
EB4&,# &- H()*"+,(-# G&&*. 2<74=76 A 2<7?=7@/
0
1000000000
2000000000
3000000000
4000000000
5000000000
6000000000
7000000000
E
x
p
o
r
t

F
i
g
u
r
e

i
n

R
s
2064/65 2065/66 2066/67 2067/6 206/6!
Year
(rom the abo"e chart seem that, the latest figure indicates that handicraft e#porter will
cross %rs.< billion marks soon. i.e. %;s. :, D@E,@BA,<@? in :?ADPAE.
8#cept in year :?A@PA> e#port of handicrafts is highest, which is AD:<,A:BE<.After
this ! ha"e seen the amount of e#port is in decreasing :?A>PAA. 'he amount of e#port
increased in fiscal year ?ABPAD which is %;s. :>B,D@,@:< and gradually increased by
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Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
,,I to :D@E@BA<@? in the fiscal year :?ADPAE.'he increasing e#port of handicraft for
other countries the kingdom is really an encouraging aspect for the de"elopment of
our handicraft industry that depends upon the sale or its output. !f there is no sale
there is no prospect. 'he tourists are important for both local sales and e#port. 'he
more tourists= "isits in %epal the more will be sale of these goods.
3.1.2 EXPORT OF HANDICRAFT GOODS FOR 1
.#
QUARTER 2<74=76
T(;01 3
EXPORT OF HANDICRAFT GOODS FOR 1
.#
QUARTER 2<74=76
S.N. P,&*'+#. S$,(!() - A.$!") -=CD +$()21
") EB4&,#
C&34(,1* #&
2<7>=7?
D .$(,1 ")
-'00 EB4&,# &-
2<7?=7@
FY 2<7>=7?
.1,"1. 1/
FY 2<7?=7@
.1,"1. 2/
, 4ashmina :,>A<<?:: ,B,>>:@@: ):?+ :?.@>
: 0oolen goods :,,?>B?<: :><:<D,@E :? <?.@>
< .il"er jewellery ,?>,A>BA? ED::@<B? )B+ ,,.B,
@ 3etal crafts DEBDB<>D ,?B>::DBB :? ,:.D:
> Handmade papers D@<@@A>D B<D>E<@@ ),:+ D.D,
A .ilk products <:ADDD,B <E@::::? :, @.B?
B &otton goods ,ADD,@BD :?:E@E?B :? :.@:
D 0ood crafts ,@?<<,,D ,<<A@,,B )>+ ,.>E
E Hemo7allo goods ,:::D@?> ,<<E,A:@ ,? ,.A?
,? /eather goods DD>???B >>:?A?> )<D+ ?.AA
,, 4aubha)thanka+ @E@?<<< <BAB:DB ):@+ ?.@>
,: !ncense >@ADBDD @>,<:D@ ),B+ ?.>@
,D
Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
,< &eramics products @>B?@?E @>>EEA ? ?.>@
,@ Bone 1 home
products
<<ABAAB @B@D@?? @, ?.>B
,> 4lastic items :><<,EB ,B@E>B: )<,+ ?.:,
,A -ther te#tile
product
,>>,?E? <>B,A:A ,@: ?.@>
,B Beads items :,ABDED ::>@@,> @ ?.:B
,D .tone craft @EE?>< E,<?:> D< ?.,,
,E 9haka product ,>@,>DE D>E@A, )@@+ ?.,?
:? Bamboo product @EAB:A @,,,:? ),B+ ?.?>
:, 3iscellaneous
crafts
,<<B<A<D ,@DE,,@B ,, ,.BD
T&#(0 ?311?<<46 ?3??<@633 1 1<<
F"2',1 3
EXPORT OF HANDICRAFT GOODS FOR 1
.#
QUARTER 2<7?=7@
,E
Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
0
50000000
100000000
150000000
200000000
250000000
300000000
"
m
o
u
n
t

i
n

R
s
2067/6 206/6!
Year
1
2
3
4
5
6
3#$ Column 7
7

!
3#$ Column 11
10
3#$ Column 13
11
12
13
14
15
16
17
1
3#$ Column 22
1!
20
21
According to the HA% e#port statistics, "arious handicraft products equi"alent to %rs.
D<DD?E><< were e#ported during this first quarter, ).hrawan Q Ashwin+ (L :?ABPD
which shows an increases of , Icompared to the same period of (L :?AAPAB.
9uring the period, e#port of 4ashmina, .il"er *ewelry, Handmade 4aper 4roducts,
0oodcraft, /eather Goods, 4aubha )'hanka+,!ncense, 4lastic !tems, 9haka 4roducts
and Bamboo &raft ha"e gone down and e#port of all other products ha"e shown
positi"e growth compared to the same period last year.
3.1.4 TOP TEN EXPORTING COUNTRIES OF NEPALESE
HANDICRAFT 2<7?=7@/
T(;01 4
:?
Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
TOP TEN EXPORTING COUNTRIES OF NEPALESE
HANDICRAFT 2<7?=7@/
S.N C&')#,: V(0'1 ") R.. R()E
, $.A >DE?@?EBA !
: Germany :D<<?@E,@ !!
< *apan :A@<B?,>B !!!
@ !taly :@:AD:>@, !K
> $.5. :<D<E>>BB K
A (rance ,DB@BEA>D K!
B &anada ,D<>A?:?@ K!!
D !ndia ,,>@?<?B< K!!!
E 'ibet ,?EBE<?,< O!
,? %etherlands AA:E>B<: O
F"2',1 4
%ermany
&apan
'taly
(.).
Fran*e
Cana+a
'n+ia
,i-et
.et/erlan+s
%ermany &apan 'taly (.). Fran*e Cana+a 'n+ia ,i-et .et/erlan+s
Among the top ten importers of %epalese handicrafts, $.A has the first position with
largest share. 'he second is Germany, which is also good market. According to the
table and figure we see not bad of e#port of handicraft goods in this fiscal year.
3.1.6 TOP EXPORTERS OF FISCAL YEAR 2<76=77
T(;01 6
TOP EXPORTERS
:,
Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
S.N. F",3%C&34(): N(31 EB4&,#1,%P,&4,"1#&, EB4&,# A3&')#
, Asiatic traders and 8#porters 3r, ;aju .hrestha ;s.,,<,B?A,@
: 8"erest 4ashmina 5nitting and
0ea"ing !ndustries
3r. 5arken 5umar
Gurung
;s. D@,E:D,A
< Lak and Leti 8nterprises 3r. .woyambhu
;atna 'uladhar
;s. >:BAADB@

T(;01 7
TOP EXPORTERS IN DIFFERENT PRODUCT CATEGORY
S.N. F",3%C&34(): N(31 P,&*'+#
G,&'4%C(#12&,:
EB4&,# A3&')#
, Gift land 8nterprises 4"t./td. Handmade 4apers ;s. <D<EE?D:
: Asiatic 'raders and 8#porters 0ooden 4roducts ;s. <>?DEB:<
< Lak and Leti enterprises .il"er *ewelry 1
Goods
;s. <B>E:A:>
@ 8"erest 4ashmina 5nitting and
0ea"ing !ndustries
4ashmina 4roducts ;s. D,:>@>,,
> H./.5. 4"t./td. 3etal &raft
4roducts
;s. ::>?A>:A
A H./.5. 4"t./td. 0ood &raft
4roducts
;s. ,,EAEA<?
B Asiatic 'raders and 8#porters &otton 4roducts ;s. ,BD:EDB@
D /a#mi 0ood &raft !ndustry Bone 1 Horn
4roducts
;s. ,?,<ED,B
3.2 ANALYSIS OF DATA
3.2.1 TREND ANALYSIS OF HANDICRAFT EXPORTS
T(;01 >
TREND ANALYSIS OF HANDICRAFT EXPORTS
F".+(0
Y1(,B/
EB4&,# F"2',1
") 3"00"&) :/
B F X A
:?A,PA:
B
2
B: :
+
F ( C ;B
:?>EPA? AD:< -: @ -,<A@A >,::
:?A?PA, :B,E -, , -:B,E @<,:.@
:?A,PA: :>>: ? ? ? <>?:.D
:?A:PA< :>B, , , :>B, :AE<.:
::
Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
:?A<PA@ :D@E : @ >AED ,DD<.A
T&#(09 G : F 1>614 G B F <
G B
2
F 1<
G B: F -?<@7
/et the straight line trend be represented by6
y M a N b# ---------------- ),+
.ince the no. of years is > i.e. odd, so the de"iation is taken from the middle of the
year :?A,PA:.
Here,
R y M ,B>,@
R # M ?
R #
:
M ,?
R #y M -D?EA
n M >
'o get the equation of trend line yMaNb#, firstly the "alues of a 1 b should be
calculated by sol"ing two normal equations2
Ry M na N R# -----------equation )i+
R#y M R# N bR #
:
--------------equation )ii+
0e get a M Ry
n
or, a M ,B>,@P >
T$1,1-&,1, a M <>?:.D
0e get b M R#y
R#
:

or, b M -D?EAP ,?
T$1,1-&,1, b M -D?E.A
4utting their "alues in the trend line equation y
c
M aNb#
0e get,
Y F 36<2.? C -?<@.7/ B
%ow, for trend "alues6
0hen # M -:, L M <>?:.D N )-D?E.A+ )-:+ M >,::
:<
Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
0hen # M -,, L M <>?:.D N )-D?E.A+ )-,+ M @<,:.@
0hen # M ?, L M <>?:.D N )-D?E.A+ )?+ M <>?:.D
0hen # M ,, L M <>?:.D N )-D?E.A+ ),+ M :AE<.:
0hen # M :, L M <>?:.D N )-D?E.A+ ):+ M ,DD<.A
4lotting the "alues in line graph, we get the estimated trend line as follows6
F"2',1 6
Here,
Growth rate M b M -D?E.Amillion per year.
.ince, the growth rate is negati"e, so the gi"en figure shows a falling trend. 'he
estimate trend analysis for the year :?ADPAE through the a"ailable data.
(or the estimation of 'otal 8#port of Handicraft Goods for the year :?ADPAE,
4ut O M :?ADPAB in #M O-:?ADPAE
0e ha"e # M :?ADPAE in #MO Q:?ABPAD M <
'hen, y M a N b#
-r, Y F 36<2.? C -?<@.7/ B
L M <>?:.D N )-D?E.A+ )<+ M ,?B@
,ren+ 0alues o1 2ast 5 Years
0
1000
2000
4000
4000
5000
6000
2064/65 2065/66 2066/67 2067/68 2068/69
Year
,ren+ 0alues
:@
Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
At last we can say that the secular trend will also be in decreasing trend as in the year
:?ADPAE. 'he highest e#port of handicraft goods was in the year :?A@PA> which was
AD:< million. 'here is decreasing trend from the year :?A@PA> which we can e"en see
in the year :?ADPAE.
CHAPTER- 4

.$33A;L, &-%&/$.!-% A%9 ;8&-38%9A'!-%
4.1 SUMMARY
Handicrafts ha"e long been a measure line of %epalese e#port. !t is a measure source
of earning foreign currency and is e#ported to o"er >? countries spread all o"er the
world.
As %epal is particularly known for its traditional art and culture the handicraft items
ha"e a significant impact upon the total production and marketing of o"erall %epalese
handicraft goods.
:>
Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
%epalese handicrafts aren=t only e#tra-ordinarily artful but also depict the %epalese
culture and tradition. %epalese handicrafts fascinate the tourist "isit %epal and their
e#port has also increasing e"ery year. (oreigners wish to know the culture and
tradition of %epal, from the measure percentage of the handicrafts buyers. 'oday the
handicraft product if %epal6 isn=t limited only to their name and fame being sou"enirs
but also they ha"e goy recognition in the international market. .o the e#port of these
items certainly holds to further de"elopment of the country.
'herefore, the need of this industry seems tremendous. 'he %epalese handicraft
industries ha"e to be flourished in different parts of our country as far as possible .!t
has not only the demand of e#port but also help decrease the problem of
unemployment. 3oreo"er, it preser"es the culture and craftsmanship and utiliCes the
local resources.
'hough our country is small and landlocked, there is great potential of handicrafts
industry.
4.2 CONCLUSION
'his industry has been a substantial asset for the de"elopment of the country.
Howe"er, there are "arious pros and cons of these industries. 'he major findings can
be pointed out as follows2
3ost of these goods are not useful to the general people, mainly on this
handicraft industry, fancy and curio goods produced which are infecting
lu#urious goods. !t will be helpful only to satisfy the wants of riches. 'here
will be no benefit to the local customers. 9ue to the low standard of li"ing of
the %epalese people they cannot afford for these e#pensi"e curio goods. 'his
industry has fulfilled the needs of the foreigners only and not the local people.
!f the foreign demand falls by some cause or other, this industry will suffer a
lot.
:A
Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
'he goods produced under this industry are "ery e#pensi"e. 'here are some
utility goods also, but much little uses in comparison to its prices. 'hese goods
ha"e no real "alue it has only curio "alue many percentages of people not
purchase these goods e"en at low price. 'ake for an instance, the market "alue
of commodity B is ;s. ,? but many people will not buy it e"en it is sold at
;s, :. -nly few people pay a price they like. 'hus this business is almost a
gambling.
By the name of this business the curio dealers e#port many antique goods. As
they get money for the antiques the dealers collect it at any cost. 'hey steal the
artistic fitting of the temples and e"en gods and goddesses directly or
indirectly and they smuggle it to foreign country. 'hat=s why6 we hear always
the news of stealing of figures or historic temples. 'hus, such things of
national and historic importance are losing day by day. 'he curio business
taught these mal practices. !t is harmful to the nation both from national and
religious point of "iew.
3ost of these handicrafts are e#ported to o"erseas countries. As an
inducement or intensi"e for the A?I of the e#port amount. 'hey import many
comfort and lu#ury goods which creates unnecessary habits and fashions
among the people. Again as the foreign goods are cheaper that the local one,
the people do purchase the foreign goods only. By this the local industries
suffer, as they cannot compete with the foreign ones. 'hese importers import
mostly the lu#uries as they will get good margin of profit on them. 'herefore,
the import in not in the fa"orable interest of the country.
'his business couldn=t yet earn there reputation in the international field. 'he
cause this is there is no fi#ed for the sale of these handicraft products. .ome
one may be selling same goods at a low price and other at the higher price.
'he foreigners are ruthlessly cheated on this business. 'he dealers of the
curios charge "ery low price to the local people and "ery high to the tourists.
'he order of foreign dealers cannot be completed in time, due to the slow
method of production, thus most of the orders are cancelled there is no sound
method of finishing too. 'he quality and the finish of the sample prices and
the goods supplied don=t often tally due to the practical difficulties, because of
the traditional method of production. 'hese products are not made to the
:B
Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
standard in quality and strong then the goods are "ery fragile and delicate. (or
filigrees and figures there is s great deal of packing problem. 0hate"er the
good packing may be, the goods reach in poor and damaged condition.
Handicrafts are one of the major e#portable items of %epal especially to o"erseas
market. 'here are many handicraft industries in %epal which are being operated in
household basis and medium scale industries. 'hose which are run in household basis
ha"e not de"eloped well because of the financial problems. 'he artisans are enabling
to e#pand their production. 3ost of the craft acti"ities are hereditary in nature so they
are producing in traditional style. 'he %epalese craftsmen are mostly illiterate and are
unaware of modern technology and in absence of proper training facility regarding
impro"ed. 'echnology use of new tools and equipment for impro"ed efficiency this
industry is facing problem of quality and price, competition and design modification.
.imilarly, medium scale industries of handicrafts ha"e been producing "ery less
manufactured crafts goods. As its number is limited traditional backwardness in
modern craft manufacture has caused %epal to face a "ery hard time to continue its
sur"i"al and growth in competiti"e world market.
'here are few organiCations which are trying to promote the handicrafts e#port of
%epal to o"erseas countries. HA%, '4& are the major organiCation among them
.HA% has so the tried to promote handicrafts e#port by making different study on
market potentially in some o"er seas countries. 4ublication of handicraft magaCines,
trade directory, regular journals and bulletins, collection of different trade information
at hand for the interested, conducting workshop seminars, making arrangements trade
fairs and e#hibition are the major promotional acti"ities conducted by HA%.
4.3 RECOMMENDATION
9espite the drawbacks, this industry is important from the economical, national and
social point of "iew the demands of foreigners for these goods are increasing in great
preparation. A special craCe has de"eloped among the people of the e rich countries
for the artistic craft works and curio articles. And it is but true that this craCe or the
thirsty of this type of articles is unlimited as such there is a great prospect of this trade
:D
Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
to our country. 'his is full of rich traditions and traditional arts and crafts. As such
%epal is recei"ing more and more orders for ours handicrafts de"eloped. !f it is
impro"ed and in modern way there is a great scope lying ahead of us.
'he following points may be recommended for its impro"ement.
,. 'he technique of production should be imported the use of modern tools. As
far as possible tools and machines should be introduced this will hand works
to a great e#tent. 'hrough this quick and mass production becomes possible.
%ew technique must be in"estigating properly organiCed business and
production would lead to adequate and timely production and goods sell. 'he
technique of finishing too should be impro"ed for better market.
:. ;egular and sufficient a"ailability of raw materials at a reasonable price for
the production or handicraft is one of the most important needs. Go"ernment
should check their a"ailability and if necessary, should import raw materials
on a regular basis.
<. (or getting successful market in the o"erseas countries, a product should buy
of attracti"e design and standard quality of the product should be maintained.
'he modern handicraft goods, which are mostly sold in o"erseas market, must
represent the artistic craftsmanship of the past.
@. 'he presence of capital market in the country can make considerable positi"e
effects on the growth of handicrafts industry and the promotion of its foreign
trade. H3G should also monitor the loan pro"ide to this handicraft industry.
>. Another important aspect in the promotion of a product is packaging. 'here
should be consistency of packaging and package siCe. An attracti"e and
efficient packaging can be a "ery good way of gaining popularity and prestige.
A. %epal being the landlocked country, the choice of transit and the means of
transportation are limited. 'he go"ernment should come up with new
arrangements to enhance the transportation and communication facilities.
B. Go"ernment policy also effects industry. .o the go"ernment should implement
effecti"e policy and launch new concrete programs for the promotion of this
indigenous industry and its e#port.
D. -rganiCed and attracti"e publicity and promotional measures of the handicraft
items should recei"e immediate attention in the foreign market.
:E
Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
E. Appropriate training centers with modern and sophisticated facilities should be
set up for pro"iding training to the personal associate with the handicraft
industry. 'he trained craftsmen would e#change would enhance, the design
and quality of the handicraft goods.
,?. A proper and adequate market research can always be a great help for the
%epalese handicraft to sur"i"e in the foreign market.
-n the whole, this is the real and traditional industry in %epal and its de"elopment
in the well balanced and organiCed manner will definitely lead to the impro"ement
of the economic standard of the people to some e#tent through new job and
employment opportunities, earning of hard currencies and through the general
well being of the artist and craftsmen of the country.
SUGGESTIONS TO CONCERN9
'here must be consisting to e#port promotion goods and rural de"elopment
goods.
'rainings7.eminars7'rade (airs78#hibitions70orkshops7etc. should be held to
gi"e information about the market potentials G.4 facilities.
'o facilitate administration procedure with respect to e#port.
4roduction should be done as per the demand of consumer.
Amendments need to be made in e#isting industries policies to create
congenial atmosphere for the growth and protection of running industries.
T& "34,&5131)# &- H()*"+,(-# B'.")1.. #$1 1B4&,#1,. +&'0* #(E1 #$1
-&00&!")2 &4#"&).9
Get e#ports ser"ices where possible.
<?
Export & Promotion of Handicraft Goods-Tushita Handicraft, Kathmandu
Acquire new sample
'ry to acquire new sample from your own customer.
Kisit trade fairs and e#hibitions periodically.
.eek assistance and cooperation from the rele"ant !nstitutions, &hambers
and Association.
<,