[🇧🇩] Cottage Industry in Bangladesh

[Saif]

https://thefinancialexpress.com.bd/trade/cottage-industries-seek-govt-support-to-overcome-challenges-1637725609

Cottage industries seek govt support to overcome challenges​

Entrepreneurs in the cottage industries sought proper support from the government to help flourish in the sector, overcoming challenges created by the Covid-19 pandemic.

They were speaking on Tuesday at a national workshop titled 'From Challenges to Creativity and Innovation: Enhancing CMSME's Resilience in the Context of Covid-19' and prize-giving ceremony to the winners of Food Frontiers 2021.

National Association of Small and Cottage Industries of Bangladesh (NASCIB) and the Global Alliance for Improved Nutrition (GAIN) jointly organised the event at a city hotel.

NASCIB President Mirza Nurul Ghani Shovon chaired the programme while Jo Jacobsen, programme, policy advisor, nutrition, gender and M&E of World Food Programme, and Dr Rudaba Khondker, country director, GAIN Bangladesh were present as special guests.

Md Monjurul Hoque, the former chief faculty member of Small and Cottage Industries Training Institute (SCITI) of BSCIC, presented a PowerPoint on the issues.

According to the power point, about 25 per cent of the industries under the cottage, micro, small and medium enterprises (CMSME) sector were shut in the first five months of the Covid-19 pandemic.

It also showed that 60 percent of industries incurred 75 losses in selling products, and 58 entrepreneurs lost capacity of investments because of the impact of the pandemic.

Around 34 per cent of entrepreneurs could not pay rents of their institutions, while 16 per cent failed to pay salaries of their staff. Besides, 29 per cent of institutions could provide 50 per cent of the dues of their staff.

The marketing of products was hampered as the income of the majority of people declined due to the prolonged coronavirus pandemic.

The production costs increased in many cases because of the higher prices of raw materials. For these reasons, local products fail to compete with the imported ones, it said.

Entrepreneurs also faced complexities in receiving funds from stimulus packages that were provided for Covid-19 impacted sectors. They also said small and cottage food industries faced challenges due to the restriction on movements of customers during the period.

They also identified problems like the unavailability of technologies in the food sector. They suggested providing one-stop services and simplifying the process of registration and rationalising tax and tariff systems.

However, three business institutions have been awarded in different categories in the programme.

Ghost Kitchen Bangladesh won first prize of US$ 9,000 for improving the production efficiency of restaurants and commercial kitchens.

The first-ever nutrition-dense raw cashew nut processing solution to ensure nutrition for local and global markets, Green Grain won the second prize of US$ 6,700.

With the technological solution to understand the soil and market scientifically to ensure fair price for the farmers, iPAGE won the third prize of US$ 4,300 under the infrastructural grant support category.​

 

[Saif]

Fiscal incentives key to small, cottage industries’ growth

In the FY24 budget, we want the government to focus on policies and allocations aiming to help promote the growth of small and cottage industries, President of National Association of Small and Cottage Industries of Bangladesh (NASCIB) Mirza Nurul Ghani Shovon tells The Business Post’s Rafikul...

businesspostbd.com

Fiscal incentives key to small, cottage industries’ growth​

Rafikul Islam
27 May 2023 00:00:00 | Update: 27 May 2023 00:27:14

In the FY24 budget, we want the government to focus on policies and allocations aiming to help promote the growth of small and cottage industries, President of National Association of Small and Cottage Industries of Bangladesh (NASCIB) Mirza Nurul Ghani Shovon tells The Business Post’s Rafikul Islam in an exclusive interview.

Which things do you give priority in the next budget?

The Micro, Small and Medium Enterprises (MSMEs) sector in Bangladesh has emerged as a key contributor to the country’s economy, providing employment opportunities to 89 per cent of the population in urban and rural areas. With a wide network of direct and indirect members, NASCIB aims to foster the development of self-sustained and profitable micro, small and cottage industries, ultimately contributing to a prosperous Bangladesh.

The MSME sector comprises a staggering 7.8 million enterprises, employing approximately 21 million people. These enterprises play a pivotal role in driving innovation, ensuring social and regional stability, and contributing to the overall growth and development of the country.

Besides, we should prioritise capacity-building and skills development, infrastructure development, research and development support, market linkages and export opportunities for the sake of the MSME sector.

As Bangladesh strives to achieve Sustainable Development Goals (SDGs) by 2030, the MSME sector’s development becomes paramount. Prioritising the aforementioned budgetary measures is important in FY24.

What types of structural reforms are necessary to further develop this sector?

Structural reforms are crucial to unleash the full potential of small and cottage industries. We need policies that address infrastructure gaps, enhance skills development, encourage entre preneurship and foster market linkages. Additionally, promoting research and development activities and improving access to technology will help our industries become more competitive globally.

As you know that the government has SME Policy-2019 and Industry Policy-2022 focusing on the development of CMSMEs. To get maximum outcomes, time-bound action plans needs to be implemented effectively with collaborative approaches. If there is any gap, we need to identify these gaps and challenges and make it happen.

Can you shed light on the current challenges faced by small and cottage industries while doing business?

Certainly, CMSMEs often face challenges such as limited access to financing, access to information, less business environment, minimum forward and backward business linkages, less subcontracting, high inflation, increased prices of raw materials, and rising energy costs.

CMSME entrepreneurs and products are deprived of various legal, institutional and strategic benefits. On the one hand, just as the entrepreneur does not get enough benefits for product market and quality research, similarly creative and quality product research and market creation do not get strategic, technical or economic benefits. Therefore, in the way of development, international market creation or IPR can be facilitated to make domestic products industrial and efficient market, so it is noteworthy.

Furthermore, bureaucratic hurdles and complex regulatory processes hinder their growth. Addressing these challenges will require concerted efforts from the government, financial institutions, and industry associations.

What kinds of problems small and cottage industries may face after LDC graduation?

CMSMEs are the backbone of Bangladesh’s economy, and it is crucial to understand the potential obstacles they may face in the post-graduation era.
While LDC graduation presents new challenges to CMSMEs in Bangladesh, it is important to approach these obstacles as opportunities for growth and development. The government, in collaboration with industry associations like NASCIB, should develop comprehensive strategies that address the specific needs of CMSMEs.

This includes providing targeted support in terms of capacity building, access to finance, technology adoption, market access facilitation, and skills development. By addressing these challenges proactively, Bangladesh can ensure the continued success and resilience of its CMSMEs in the post-graduation era.

Considering high inflation, increased prices of raw materials, and rising business cost, do you believe that fiscal incentives are necessary for the development of the sector?

Absolutely, fiscal incentives play a vital role in promoting the growth of small and cottage industries. These incentives could include tax exemptions or reductions, duty waivers on imported machinery and raw materials, and subsidised energy prices. Such measures will help alleviate the burden on businesses and encourage their sustainable development.

What kind of policy support do you expect from the government to facilitate the growth of small and cottage industries?

We want the government to introduce supportive policies that ensure a congenial business environment. NASCIB urges the government to simplify and streamline regulatory processes, remove bureaucratic tangles and paperwork. The establishment of a single-window clearance system or an online portal for regulatory compliance would significantly improve the ease of doing business for these industries.

NASCIB firmly believes that with the right policy support from the government, these industries can flourish and contribute significantly to employment generation, poverty reduction, and overall socioeconomic progress.

The government should create a congenial environment that nurtures the growth of small and cottage industries, paving the way for a prosperous Bangladesh.

Do you get adequate support from BSCIC to develop your industries? What’s your observation?

Bangladesh Small and Cottage Industries Corporation (BSCIC) is playing a vital role in supporting small and cottage industries. However, there is room for improvement. We appreciate the initiatives, taken by BSCIC, such as providing infrastructure facilities and training programs.

However, we would like to get more targeted support, including easier access to finance, assistance in technology adoption, and marketing support for our products. Streamlining bureaucratic processes and enhancing coordination between BSCIC and industry associations will also be beneficial.

You received CIP card. What type of business you are doing and what’s your future plan?

I am the owner of a metal factory located in Kalihati of Tangail district. Our factory specialises in the production of various metal products, including components for machinery and equipment. With the CIP recognition, I feel honoured and motivated to contribute further to the growth of the small and cottage industry sector.

As for my future plans, I aim to expand the capacity of my factory and invest in advanced technologies to improve productivity and quality. I also plan to diversify our products to cater to both domestic and international markets. Moreover, I will continue to actively engage with industry associations, government bodies, and other stakeholders to advocate for the needs and concerns of small, medium and cottage industries.​

 

[Saif]

Dhaka’s handicrafts now in global market

Tucked inside Baitul Aman Housing Society at Adabor is the factory outlet of “Hand Touch” -- a handicrafts venture with a focus on recycling and catering to a niche market of hand-woven textiles in Bangladesh and abroad.

www.thedailystar.net

Dhaka’s handicrafts now in global market​

Photo: Star

Tucked inside Baitul Aman Housing Society at Adabor is the factory outlet of "Hand Touch" -- a handicrafts venture with a focus on recycling and catering to a niche market of hand-woven textiles in Bangladesh and abroad.

The endeavour, Hand Touch by Mohammad Ali Khan, has been in business since 2002 and its speciality is in home décor and textiles made by Bangladeshi women. The fabrics of choice are hand-woven materials like cotton, silk, and local fibres namely khadi, endi silk, jute, and others.

While clothing like local saris and three pieces are solely for the local market in Dhaka, the household products are of export quality and they have already grabbed the attention of the European market -- especially in countries like the Netherlands, Sweden, France, and Italy. Their products are also exported to Canada, Japan, and Saudi Arabia…even as far as Uruguay!

"Neel Poddo Crafts" is an online page of Fahmida Sultana. She buys wholesale products from Hand Touch like khadi and taant saris and sells them through social media pages. There are about 100 or more such Dhaka-based online sites that sell products bought in bulk from Home Touch.

Graduating in silk technology with weaving as a minor subject, Khan has been experimenting with fabrics made by local artisans. His most recent experiment is the double-khadi weave, where he worked on the warp and weft of the loom with handmade, recycled cotton threads.

"It is not an easy task. After many tests and trials, I got the fabric done. It was for an order of throws and cushion covers in the Netherlands. I had them printed in black, zigzag patterns and the final product looks incredible.

"What makes me happy is that it carries the 'Made in Bangladesh' tag. Just like the RMG sector, we can work wonders with our cottage industry handicrafts," said Khan.

Currently, there are 30 or so companies based in Dhaka working to export local products like wicker baskets, table mats, runners, dining cloths, kitchen aprons, napkins, kitchen towels and tote bags made of recycled cloths, jute bags, and mats. Mohammad Ali Khan has two factories in Panchagarh and Manikganj for their production.

"I have 300 producers involved in the cottage industry. I explain my order and give them a sample. Then, the women artisans get the work done maintaining strict quality control," he shared.

"In Cumilla, handmade khadi threads are spun from spinning mill wastage and I collect the garments waste, make cotton out of them, and re-spin them into threads. The khadi products are hand spun and others are woven in machines. Dhaka is buzzing with ventures promoting local crafts and there is a robust online presence of local saris," Khan explained the reason behind the busy outlet.

We know that Pabna is popular for its buti and coarse saris from Dogachi. Tangail has its fine taants, Rupganj boasts timeless Jamdanis, and Mirpur has its gorgeous katans. Similarly, Cumilla has its yarn-based handloom khadi, and Rajshahi has silk.

Needless to say, our heritage weaves, yarns, and handicrafts are still struggling to put their stamp on the global market. So, when you come across such vibrant local businesses exporting and trading in our handmade merchandise in the global markets you most certainly feel elated.​

 

[Saif]

undefined | The Financial Express

thefinancialexpress.com.bd

Steps to boost handicraft sector, expand export footprint
REZAUL KARIM
Published :
Jun 16, 2024 10:30
Updated :
Jun 16, 2024 10:30

The government has initiated comprehensive strategies for the handicraft sector, aimed at boosting exports and broadening the nation's export basket, according to the Commerce Ministry.

To achieve these goals, a high-powered committee has been formed by the ministry to develop an action plan within a month. This 13-member committee will assess the overall situation of the handicraft sector.

Sources said the government intends to implement the "One Village, One Product" (Ekti Gram, Ekti Ponno) strategy to promote Bangladeshi handicrafts both domestically and internationally.

In a recent notification, the Commerce Ministry has designated handicrafts as the product of the year 2024, emphasising the role of women in their production and aiming to enhance exports and diversify the export basket.

Earlier, the Commerce Ministry instructed Deputy Commissioners (DCs) to compile lists of handicrafts in their respective districts, including details such as producers' names, addresses, and the stories behind their products.

DCs have also been directed to showcase handicrafts prominently at the upcoming fair during Pahela Baishakh, the Bengali New Year.

Handicrafts can play a special role in the "One Village One Product" selection process. Steps are being taken to select handicraft products (which may include food items) from villages, identify producers, choose the best products from the country and brand them for competitiveness in domestic and international markets.

To further bolster the sector, the ministry plans to exhibit these products at airports, national institutions, and selected Bangladeshi embassies abroad.

The government will offer training and technical assistance to improve product quality and competitiveness, alongside policy support such as low-interest or interest-free loans from financial institutions, without the need for collateral. Additionally, efforts are underway to promote these products through e-commerce platforms.

The handicraft industry is integral to Bengali culture and heritage, noted for its labor-intensive nature, low capital requirements, and reliance on local raw materials, which keeps production costs low, said an official.

He emphasized its potential to contribute significantly to poverty alleviation and women's economic empowerment, providing opportunities for financial independence.

With Bangladesh graduating from the least developed country club, the government should place greater focus on smaller but promising sectors like handicrafts, he noted. These products are gaining huge popularity worldwide. The sector currently benefits from a 10 per cent cash incentive on export receipts, which was double the rate before 2019.

According to an estimate by the International Market Analysis Research and Consulting Group, the global handicraft market size reached $752.2 billion in 2022. The market size is expected to rise to $1,296.6 billion by 2028.

Bangladesh's export earnings from the sector saw sharp growth in the three fiscal years from 2020 to 2022. According to Export Promotion Bureau (EPB) statistics, the figures were $20.52 million, $33.97 million and $42.83 million respectively.​

 

[Bilal9]

The Bangladesh cottage industry has come a long way in the last two decades, but they really have to focus on designs and items people buy in the West. They have to take samples from Western markets and focus on making exact copies. Western Housewives are focused on certain tried and true designs for everyday-use home articles like baskets, handbags etc. Rattan and "Jhute" (RMG clothing industry reject pieces)are exported to other countries, which they use to produce and export articles like placemats and handbags - even patio furniture. We don't do much with those, which is regrettable.

Go to the web and look at how much a set of rattan furniture costs in websites like WayFair. In the Philippines, Vietnam and Indonesia, these furniture (along with other types of handcrafted furniture) are a major industry. This patio set in Wayfair costs around $1200.

I know these are examples of furniture, but there is a distinction between machine made and handcrafted items like patio sets made from Rattan.

The quality of our handicraft items is already pretty good. They just have to provide a better product at a cheaper price point compared to other countries.