October 1: The handicraft industry of Nepal is producing products at 20 percent of its full capacity. The production of Nepal’s handicraft  industry had declined by 80 percent before the lockdown on March 24 after the number of tourists stopped visiting the country due to fear of coronavirus. Even the demand for handicraft has gone down significantly, due to which the manufacturers have reduced their production. Stakeholders say there isn’t any new demand after the start of the coronavirus pandemic.

Handicraft entrepreneurs say they are operating their industries only to fulfill the demand for felt, pashmina, woodcarvings and silverwares that were ordered before the lockdown.

It has been learnt that around 60 percent workers in this field have been rendered jobless after the handicraft industry started producing at 20 percent capacity.

President of Federation of Nepal Handicraft Association Surendra Bhai Shakya says they are unable to increase production due to lack of demand from overseas.

“What can we do by just increasing production? There isn’t any sale. How long can we stock the products?” questioned Shakya.

After firing the workers, Shakya says they are worried about getting skilled workers later when the situation gets normal.

According to the data of FHAN, the domestic market of Nepal consumes handicraft materials worth Rs 6 billion every year. The USA, China and European countries are the major markets for Nepalese handicraft products. Nepal exports handicraft products worth Rs 11 to 15 billion to these countries annually. Even those who purchase handicraft products in Nepal are foreigners.

The handicraft entrepreneurs have been forced to export their products at three times higher price due to unavailability of flights during global lockdown. The problem has not resolved although regular flights have  resumed.

Chairman of Nepal Export Council Hari Bahadur Karki says only limited airline companies are operating flights to and from Nepal and the airliners charge them fare as high as that of chartered flights.

Although the government has lifted restrictions, places like Basantapur, Thamel, Patan and other areas where these products are sold do not have any customers at the moment.

Stakeholders say their business is in peril because the handicraft industry is directly linked with the tourism industry.