Finally SAARC Handicraft Centre gets budget

The government has begun the process to create the much awaited SAARC Handicraft Development Centre, one of the seven in the South Asian region, in the country to ensure quality products and promote the export of Nepalese handicraft items.

It has allocated Rs. 50 million for the construction of building for the centre which will be built at the premises of the Department of Industry, Tripureshwor.

Handicraft entrepreneurs, who criticized the government for the budget which was silent about the centre and other programmes to produce skilled human resources, are delighted with the new government move to construct a SAARC-standard handicraft development centre.

In his budget speech, Finance Minister Bishnu Prasad Poudel had promised to provide budget to enhance the production of the goods that have high export potential and promote such products in the international market.

Once the centre was build, SAARC Development Fund will provide approximately USD 1.7 million for its operation and instrument management, informed Dharma Raj Shakya, president of the Federation of Handicraft Associations of Nepal (FHAN).

The centre will have handicraft showroom, quality testing laboratory, design centre and training programmes to support the sector.

“It will also facilitate in research and development progremmes in order to design and promote indigenous and innovative handicraft products,” said Dr. Govinda Prasad Regmi, director general of the FHAN.

The government has planned to operate the handicraft as per the Public-Private-Partnership (PPP) model.

“Nepal will receive the final document for the handicraft centre from the SDF, Bhutan by next month. We have been planning to organize the stone laying ceremony of the building in August this year,” informed Dr. Regmi.

Nepalese handicraft entrepreneurs had been demanding such centre for years while SAARC ministerial-level meeting held in Kathmandu in April 2013 had agreed to establish such centre in all member countries and also decided to assign the Handicraft and Handloom Export Corporation, India as the lead agency to further the process.

However, such centres will be built in all SAARC member nations but India.

“India said that it does not need such centre as its handicraft products have already captured a good market share in international trade,” said Dr. Regmi.

 According to the FHAN, the size of handicraft business in Nepal is more than Rs. 20 billion per annum and the sector has been contribution more than 12 per cent in the country’s export. Nepalese handicrafts are exported to about 80 countries in Asia, Americas and Europe.