The government yesterday declared handicrafts as the product of the year 2024 to highlight the role of women in the making of handicrafts, promote exports, and diversify the nation's export basket, which is currently dominated by the garments sector, according to a notification by the commerce ministry.

The announcement comes in line with the Export Policy 2021-24, which aims to declare an item as the 'product of the year' to promote it on the global market, said a senior commerce ministry official.

Last month, Prime Minister Sheikh Hasina had declared handicrafts as the product of the year at the inauguration of the Dhaka International Trade Fair (DITF). In her speech, she said handicrafts had played a great role in empowering women by generating employment.

Despite there being no reliable data, industry insiders believe the domestic market for handicrafts is worth around Tk 10,000 crore annually. They added that at least 40,000 entrepreneurs were involved in the sector, which directly and indirectly employs 50 lakh people.

Handicrafts exports fetched $29.75 million in fiscal year 2022-23 after earning $42.83 million the previous fiscal year, according to the Export Promotion Bureau.

"The government is likely to provide some logistical support or incentives for the sector's development. That is why handicrafts were declared as the product of the year," said SU Haider, president of the Bangladesh Handicrafts Manufacturers and Exporters Association (BANGLACRAFT).

He said exporters currently received an eight percent cash incentive for the export of handicraft products.

According to Haider, the sector's export earnings amount to around $100 million per year but the EPB data does not paint the full picture because of improper listings under the Harmonized System (HS) Codes, a standardised numerical method of classifying traded products.

Rubina Akter Munni, managing director of Design by Rubina, said the government makes this type of declaration every year. But no sector gets any practical benefit from this announcement.

She alleged that despite the sector having huge potential to develop and expand in the global market, there is no patronisation by the government.

No institution even provides training for such handicrafts, she said.

Giving an example, Munni said there are a number of craftspersons in the Chittagong Hill Tract who manufacture very good quality products with bamboo. But they do not have financial capability to develop their any business.

These craftsmen learn techniques from their ancestors, she noted, saying if they get training and patronisation, they would be able to contribute to the economy and create employment.

Mohammad Washier Rahman, proprietor of Craft N Craft at Dokkinkhan in the capital's Uttara, said entrepreneurs never benefitted from this announcement other than in terms of publicity.

"This type of announcement does not help to develop the sector or help small investors who do not have access to finance," he said.

According to Rahman, entrepreneurs in the handicraft sector have little financial capacity to develop business despite seeing a bright future.

Rahman said there are thousands of small investors in the handicraft sector who are contributing to the economy silently as well as a number of entrepreneurs quitting the business due to financial losses.