International BusinessHandicraft exporters to turn focus on new mkts
Indian handicraft exporters are gearing up to explore new markets in South Africa and Latin American countries as demand from major importers like the US and the European Union (EU) continue to suffer from the global economic downturn.
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“Our focus has changed. We are trying to focus on new unexplored markets where the demand is still strong to offset the losses we are suffering due to lack of demand from major importers like the US and EU,” said RK Malhotra, chairman, Export Promotion Council for Handicrafts (EPCH) Asian Handicrafts CMD.
The US is the largest buyer of Indian handicrafts and accounts for 32 per cent of total handicraft exports, followed by the EU nations, which account for 22 per cent of the exports.
The Foreign Trade Policy (FTP) 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. Moreover, 52 items have been added in the special focus products, while the market-linked focus product scheme has been expanded to incentivise exports to countries like Algeria, Egypt, South Africa and Brazil.
EPCH is set to organise exhibitions and buyer-seller meets in such unexplored markets like Argentina, Croatia and Hong Kong in the coming months.
“The FTP has given a lot of importance to handicrafts and exporters have benefitted by around 5-10 per cent, which has allowed them to bring prices down. We want that through these meets the exporter is exposed to these new markets and generate business. In a year, we usually have 32 such meets but this year we will have around 40,” Malhotra added.
Handicraft sector is the worst affected in the entire textile industry as people in the Western countries have steeply cut down expenditure on items that the sector has to offer. The exports declined by 48.35 per cent to about $1.8 billion in the previous financial year 2008-09 and have contracted by 24.58 per cent to $789.30 million till August 2009 of the current fiscal.
Moreover, the council is gearing up to organise a fair for handicrafts and gifts in October and is expecting around 2,500 participants and 4,000 buyers from overseas. The fair is an annual event. In 2008, it had generated a business of around Rs 575 crore for exporters. EPCH expects that exporters would be able to generate business at last year’s levels, if not more.