The 33rd edition of Indian Handicrafts & Gifts Fair (IHGF-Spring 2012), held at the India Expo Centre and Mart, Greater Noida, generated an approximate business of Rs. 855 crore during its four-day exposition. Around 4325 foreign buyers, representing major buying houses and retail chains and brands like Carrefour, Walmart, Home Depot, Macy’s, Ikea, Target, Odel, JCPenny, GAP, Tesco, Tok & Stock, and Bed Bath & Beyond visited the fair to source their requirements from a diverse range of products under one-roof showcased by 2300 Indian exporters and manufacturers from 28 States of India.
Buyers were fascinated by the oriental designs and products which had a mix of materials like wool, metal, glass, wood, etc. There were enquiries for Christmas, dried flower, paper products and fragrance products. Overseas buyers evinced keen interest in India’s design elements anchored on trends interpreting various inspirations and tendencies and use of an assortment of material. “The Council has been undertaking an aggressive and alert stance towards consolidation and upgradation of the handicrafts sector. We are working segment-wise for the development, quality, packaging and marketing of products, keeping in mind, requirements, interests and also concerns of the buyers,” says Rakesh Kumar, Executive Director of EPCH. “The target for export of handicrafts in the 12th Five Year Plan has been set for Rs. 28,110 crore and taking into account the present trend and the proposed infrastructure and facilities, the target is achievable,” added Kumar.
China emerging as major buyer for handicrafts
A large number of overseas buyers came from diverse countries like the US, UK, Japan, Germany, France, Australia, Spain, Greece, Italy, Hong Kong, Turkey, Hungry, Oman, Bulgaria, Thailand, Singapore, Lebanon, Israel, Portugal, Sweden, Mexico, Denmark, Belgium, Canada, Switzerland, Taiwan, UAE, Bangladesh, Nepal, Netherlands, S. Arabia, S. Africa, LAC and CIS. However, China led the pack with many companies making a visit.
As EPCH’s diversification strategy yielded positive results in the Latin American markets, it is now eyeing to cash in from the rising demand for Indian handicrafts in China. China is internationally recognized as a handicraft producing nation, which has extended tough competition to Indian handicraft sector till recently. But now, owing to extensive mechanization, most of the Chinese goods are prepared with machines, and only finishing is done manually. This, eventually, has resulted in a rise in demand for Indian handicrafts, as per Arvind Vadhera, Chairman, EPCH.
During 2010-11, India’s handicrafts exports to China were valued at Rs. 9.457 billion. Scarves and hand printed textiles were among the list of major handicraft products that were exported from India to China. China represents a 30 per cent share in global handicraft trade and international fairs organized by EPCH which were regularly being attended by Chinese buyers.
Till now, EPCH was focusing only on the US and EU markets, which are presently facing financial crisis, and hence the Council is now shifting its focus to new markets, he said. EPCH is seeking service tax waiver for trade expositions organized within the country. In its pre-budget recommendations, the Council has also suggested continuation of interest subsidy of two per cent even after March 31 and cut of customs duty from 30 per cent to zero per cent, he informed.
During 2010-11, the exports of handicrafts were Rs. 10,335.96 crore and target for the year current year (2011-12) has been fixed at Rs. 12,428 crore. In the meanwhile, Handicrafts exports in the first 10 months registered an increase of 23.44% at Rs. 8992.12 crore of the current financial year 2011-12 as against Rs. 7284.48 crore during the same period last year.
Awareness Programme on Quality Compliance for Chikan & Zari Handicrafts Exporters in Lucknow
Compliance being the biggest issue in the global markets, the Export Promotion Council for Handicrafts (EPCH) organized a two-day Awareness Programme on Quality Compliance for Chikan & Zari Handicrafts Exporters at Lucknow recently.
Eminent International Filipino lifestyle designer P. J. Aranador from National Centre for Design and Product Development (NCDPD) and Yoke Twight, Fair Trade Organization, Holland apprised the participants on ethics and importance of designs and compliance practices in exports. Further, Jabeen, President Fair Trade Forum, India detailed various aspects of compliance.
In the current global market, micro-producers and their associated artisans face the loss of their traditional markets and compliance issue (market and regulatory both) is the biggest challenge in the expansion of the Indian handicraft sector, according to Rakesh Kumar, Executive Director – EPCH.
“EPCH had realized the need and organized this awareness programme on quality compliance issue for the handicraft production centres with the sole objective of addressing the needs of handicrafts sector that can enhance the competitiveness in the globalized economy,” added the Executive Director.
The Awareness Programme mainly deliberated on the need for compliance and corporate social responsibility, social, environmental and legal compliance requirements and testing procedures and certification for textile-based handicrafts. It included implementing social compliance parameters among the home weavers, aspect of quality control, inspection and testing parameters. Special emphasis was laid to a whole new concept called ‘ethical fashion’ – the new fashion statement in Europe and concepts of Fair Trade.
Export of zari and zari goods registered an increase of 10.47 per cent at Rs. 178.47 crore during the period April-December 2011-12 as against Rs. 161.56 crore compared to the corresponding period of April-December 2010-11 and in dollar terms, the exports increased by 7.41 per cent at US $ 37.82 million as against US $ 35.21 million during the same period last year.
Panipat to have Common Facility Centres for Home Textiles
With the State Government proposing to set-up CFCs across the State to enhance competitiveness and productivity of MSMEs in Haryana, the plan is to set-up Common Facility Centres (CFCs) for home textiles and textile machinery in Panipat. The CFCs will have common infrastructure needed for that particular cluster, and will include design centre, testing facility, production unit, training centre, R&D centre, Effluent Treatment Plant and other facilities.
For setting up a CFC, the Central Government will provide 70 per cent subsidy subject to a cap of Rs. 150 million, while the remaining amount will be shared between the industry and the State Government.
Haryana is home to around 80,000 MSME industries that together provide employment to nearly 9,00,000 persons and produce goods worth Rs. 45 billion every year.
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