“A CASE STUDY OF HANDICRAFT

BUSINESS IN NEPAL”
CHAPTER I
1. INTRODUCTION.
1. Introduction to Handicraft and Metal
Crafts.

1.1 Introduction to handicraft Business in Nepal

Handicraft generally means any product solely made by
human hands without using any kind of complicated
machinery or equipment. Handicraft consults intelligence of
Artisans, influencing the traditional or modern artists. It is an
art or craft needing skill with hands.
Handicraft is the occupation of making by hands usable
product graced with visual appeal. It is the method of doing
or construction an object or device usually by hand and with
native materials. It combines art and crafts. Handicraft
include such activities as needle work, lace-making,
weaving, printed textile decoration, baskery, pottery,
ornamental, metal working, jewellery leather working and
wood working. Handicrafts are usually done with machines
but rather with hand tools which hand tools which at times
may even be made by them by hand.

“According to the definition formulated by

UNCTAD,“The term handmade articles reflects to the article
or the group of articles, which is being produced mainly with
the help of those tools or instruments, which are used by the
artisans in making the handicrafts goods which are simple
kind and which are used by the help of artisans hand or feet
can be called handicraft.
In conclusions, handicrafts are an occupation that
involves making usable or decorative products by hand.
Art is associated with human nature and their feelings,
which has been accepted widely. Handicraft whole include
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the art of hand and mind, thus the production is very much
low. As nature of mankind things which are not easily
available human are more attracted towards it. This way
handicraft popularity has been increasing day by day.

Nepal is our landlocked country and cultural and

traditional country so export of handicrafts helps to develop
the country. Handicrafts are source of earning of foreign
currency that’s why craftsman should be aware and they
should be able to collect information about the handicraft.

1.2 Historical Background of Handicrafts

Association of Nepal
HAN was established in 1971 to enhance and to
promote handicraft trade and industry. It was registered
under. Institution Registration Act of Nepal. It is a service
oriented non-profitable organization of private sector
business and artisans’ community. It helps its members to
improve their productivity, expand markets and introduce
them to the international arena. It also works as liaison
between its members and the government and non-
government organization. It provides pragmatic suggestions
and advice to His Majesty’s Government and its related
agencies to formulate policy programs for the betterment of
handicraft trade and industry.

1.3 Historical Background of Nepalese

Handicraft
Nepalese Handicraft have been valuable part of
Nepalese heritage. The historical background of Nepalese
Handicraft can be traced only since the 5th century A.D.
During Kiratee period Nepalese were been engaged in crafts
work than in agriculture.
“However it is said that as most of the handicrafts of
Nepal are influenced by the Buddhist iconography of the
Tantric Bajrayan sector, the history of Nepalese art and
crafts is not longer then 2000 years.”

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 Nepalese People used to product handicrafts gooda
usually in volume with more or less standard quality so, the
Nepalese people have developed its culture & craftsmanship
in such a way that they have made their country a living
museum full of traditional ceremonies and handicrafts.

“Nepalese Metal crafts” has long successful

history. The influence of Nepalese artistic metal works
can be traced even in Tibet. When man first discovered
fire in the form of a forest fire, little did he know then
that he could produce, use and misuse the same feared
power in the future that was to soon follow was to be
massively replaced by metals, which were comparatively
malleable and ductile and could be changed in form
when heated and with other such boons of metal which
was otherwise not offered by the curde stone objects. It
was perhaps after the discovery of these metals that
man increasingly refined their senses and developed
their tastes shapes and figures of objects which to later
give birth to a different profession altogether called
metal work or metal casting.

It took approximately 6000 years for the

culmination of present-day use of metals on its way of
development. Experts believe that the Metal Industry in
Nepal has existed for more than 2000 years. However
the first recorded evidence of copper and Bronze objects
being produced in Nepal can be traced back to the early
Lichhavi period (500-880 A.D). Statues dating from the
6th century were casted at Chandeshwari temple in
Banepa and at Shanku. Most experts assume Patan to be
the city where at art of metal casting originated,
flourished and clustered.

During the 13th century when Araniko finished aking

copper statues of ‘Sung Emperor’ it looked so perfect
that china were very impressed, they expresses very
sincere and deep appreciation for his artistic genius.

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1.4 Introduction of Metal Crafts in Nepal

Handicrafts created by using the metal termed as Metal

Crafts. Metal generally used for metal craft are Gold, Silver,
Copper, Iron, Bronze. At first the artist creates a desired
image in wax using his expert hands and simple tolls made
out of animal horns. The metals are castled using a very
primitive method of metal casting known as the lost wax
method and the metals used for the purpose are bronze,
brass and copper. Bronze is an alloy of 75%copper and 25%
tin .Bronze, which is relatively more expensive than copper
is also known as ‘Kasa’. Like Bronze, brass or ‘petal ‘is an
alloy with 75% copper and 25% zinc. The lost –wax method,
which was introduced by the Egyptians during the Bronze
Age, is known today as the investment method of casting.
This process is also known as the precision –casting process.

In this method an exact model or pattern of the article

to be cast is made in wax from the original piece known as
the masterpiece which is at all time a metallic piece shaped
to exact dimensions . The first and shapely wax impression
serves as a masterpiece or model to other wax piece in
return and is locally known as ‘mania ’ and is made from
the combination of beeswax and incense powder of sale
wood. Several of these pieces are derived from the original
one depending on the demand and supply graph, they are
then covered with a claylike material to from the mould.
Thereafter they are plastered wholly with a paste that is a
combination of cow dung and mud .The same ‘mania ‘ is
further wrapped up with a paste that is a mixture of cow –
dung , rice chaff and mud .Depending on the size of these
pieces, these mixtures are applied on to them. Usually the
mixture is applied in two layers and it covers the
unreachable corners the unreachable corners too. However
the bigger ‘manias ‘need at least 5 coatings. Thereafter,
these dices are left to dry in the sun. It is to be reminded
here that process is not used in the monsoons for the dried
in the sun. However some of the craftsmen do continue with
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 process in room temperature thereby taking more days for
plastered ‘mania’ to dry up.
The following process requires the composite to be
heated .The heating hardens the mould and simultaneously
melts the wax , which drains off through the tiny hole kept
for the very purpose, leaving an exact negative impression ,
which is then filled with molten metal and allowed to solidify.
Simultaneously the red-hot hollow piece is heated in the
oven made of brick and mud plaster prior to the filling
process .Once the mortal metal is filled, the object is left to
cool in the nearby area. As the metal inside the mould is
cooled, the outside cover is broken and the metal parts and
the metal parts that have taken shape inside are taken out.
The outcome is the shapely parts of metal piece that were to
later make up the beautiful figures of some Hindu or
Buddhist deities viz., Tara Buddha, Bodhisattvas and
Lokeshwar.

This process inadvertently produces castings having

greater dimensional accuracy and relatively smoother
surfaces as compared to other methods of metal casting.
These accomplished products of casted metals are fuether
made smoother and brilliantly shining with the use of as and
paper and other razor like instruments that give it a proper
shape and perfect shine. Designs are also engraving on these
metals pieces. These pieces of metals are etched separately
for engraving designs.
These beautiful metallic parts are later united or
brought together by gas welding and by using copper nails.
Only brass status are coloured with boot polish, which is quite
an outdated practice but still very effective. Both brown and
black coloured boot polish are used. Bronze is used only for
making bells especially the bells used for ringing and not used
as a showpiece.

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1.4.1 Tools & Equipment Used by Mental
Craftsmen

i. A clay oven
ii. Bellow hand operated & electric
iii. Pigeon’s Feather
iv. Forceps
v. Hammer
vi. Tongs
vii. Scissors
viii. Chisel
ix. File
x. Painted iron rod called “kwanas”
xi. Ruler
xii. Stove (makal)
xiii. Wire brush
xiv. Buffalo horn knife called (silayko)
xv. A flat wooden hammer
xvi. A small flat stone slab (for beating soft coax)
xvii. A small bowl (for boiling wax)

1.4.2 Export procedure of Handicrafts from

Nepal
a) An exporter should have
b) Registration of firm/company/industry
c) Registration in local tax office
d) Current account in a commercial bank
e) An export order could be affected
f) If a latter of credit is opened on the exporter’s
name,
g) Advance payments are deposited, in convertible
currency, in the exporter’s bank account
h) Samples up to the value of us$ 150 could be
exported without the conditions

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i) Documents required for export
j) Commercial invoice certified by HAN
k) Packing list
l) Certificate of origin
m) Nepal Rashtra Bank declaration from
n) Certificate from HAN
o) Advance payment of letter of credit
p) Authorization latter
q) A copy of firm registration /Income Tax registration
r) A copy of Custom’s Agent registration
s) Museum pass certificate
t) G.S.P. from A
u) NO objection letter from HAN for products made
from the parts of domestic animals
v) Recommendation letter form Department of mines
for some mineral products
w) Recommendation letter from Department of
forestry for some forestry based products

1.5 Problem Identification

There is the problem of mechanical process. Mechanical

process means while molterisation they will have the
problem of burning and may have the accident so,
Government should give change to give them the life
insurance. Externally the export of Metal Handicraft is not
going on systematically. There is the problem of
unavailability and rising price of basic raw materials like
brass and copper ingots, sheets and wires, zinc ingots etc.
because of Irregular and short supply of basic raw materials,
the industry is forced to use whatever scrap metals are
found in market.

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1.6 Objectives of Study
1 To promote the handicraft product.
2 To analyze the trend of metal crafts.
3 To encourage Nepalese artisans to adopt handicraft
production as their profession by preserving
Nepalese culture heritage and t0 popularize it in the
world.
4 To work towards trade and industry that metal crafts
will popularize all over the world.
5 To figure out the present condition of metal
handicraft.
6 To present various data regarding the export of
Nepalese Metal crafts and its role in the export trade
of Nepal.

1.7 Significance of Study

Metal Handicrafts play a significant role in the
foreign trade of our country. Nepalese handicrafts
especially MATEL Handicrafts get a good name due its
unique beauty and artistic &cultural value.
In Nepal, Kathmandu valley is the main center of
metal crafts industry. Kathmandu valley produces about
90% of the metal crafts products manufactured in Nepal.
Records dating back to mid-1500s also describe
the flourishing metal industry in a section of Patan.
Probably o copper deposits in this area accelerated the
flourishing of the industry. Until this day the city of patan
beats and thrives with the metal casting industry, which
has become a lifeline of sorts to these people. This city,
which is the manufacturing core of statues cast in metal
sculptures, exports its products to the world outside
apart from serving the indigenous market. Newars of the
valley, renowned for ages comprise the majority of
skilled and preferred artisians.

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 The export of metal crafts, metal figures and the
filigree works is of greater importance. It can be of great
Importance to the national economy if it develops in
designs and achieving economic in production.

1.8 Limitations Of Study

The Limitation of Study are as follows:-
1. This study does not include other handicrafts that
are exported to other countries.
2. This study cannot be ruled on the study is mainly
based on secondary data and no primary means
have been used for data collection.
3. This study of this report is based on the area of
Kathmandu whereas it should be study on
Lalitpur because Craftsmen and producers
are in Patan and Bhaktapur.
4. It only deals with overseas export and
promotional aspects.

1.9 Research Methodology

The basic study of this report is to analyse the

increasing/decreasing trend of Metal Craft export. This
report is to access the relationship between export of
Nepalese Handicrafts and the role of metal handicrafts in
the total exports of handicraft, to gather as much
information about Metal Crafts.
For the fulfillment of this subject matter, necessary
data and information are collected. The main sources of
data accessed under this study include HAN, Newsletter
& Publications. Trade bulletins and Libraries. This study
is based on secondary data.

1.9.1 Data Collection Methods

The data is collected by the Observations and
Review. The data presented in the Tabular from. The
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tabulated data have also been presented graphically. It
shows the change trend of Metal Handicrafts Export in a
simplest from.

1.9.2 Data Processing Technique

The following are the data processing technique.
a. On the basis of observation and review,
b. Format for the data collection ware prepared.
Required data were colleted and tabulated.
c. Data were presented and analyzed systematically.

1.9.3 Statistical Tools

Tools used for this report like Tables, multiples Bar
Diagram, graphs have been used.

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 CHAPTER II

2. Presentation of Data and analysis

The analysis was done to figure out present condition of
Metal Handicraft in the total export of Metal
Handicrafts.

Table-1
S. Product 2085/59 2059/60 % 2060/61 2061/62 %
No Name change change
(+ / -) (+ / -)
1. Pashmina 2060120389 413067961 -79.95 535,712,85 552,347,11 3
7 9
2. Wollen Goods 67,408,844 48,613,430 -27.88 335,705,37 396,385,77 18
3 8
3. Silver 54,672,913 52,472,745 -4.02 269,861,63 282,442,65 5
6 0
4. Jewellery 50,567,347 46,605,111 -7.84 199,065,83 199,261,35 0.10
3 3
5. Handmade paper 58,776,206 53,233,368 -9.43 215,080,42 242,609,25 13
products 4 2
6. Metal crafts 83,366,630 10,211,775 22.49 111,624,28 95,297,987 -15
5
7. Silk Products 16,385,322 17,505,082 6.83 88,121,510 73,321,028 -17
8. Cotton Goods 10,230,644 17,505,082 -29.74 49,224,580 50,588,484 3
9. Wood Craft 4,065,602 4,682,668 15.18 28,268,284 43,850,775 55
10. Hemp/Allo Goods 7,025,104 12,211,376 73.82 17,108,724 17,227,210 1
11. Leather Goods 3,394,674 2,844,200 -16.22 12,597,644 15,226,166 21
12. Incense 3,351,492 4,646,756 38.65 10,202,518 15,330,783 50
13. Pauba (Thanka) 1,203,776 2,082,068 72.96 8,714,618 13,182,467 51
14. Ceramics Products 3,237,669 2,663,482 -17.73 7,575,792 10,270,967 36
15. Plastic Items NA 2,99,513 NA 4,364,620 5,958,999 37
16. Other Textile 7,368,573 2,190,520 -70.27 5,438,054 5,315,042 -2
Products
17. Beads Items 2,360,144 1,554,016 -34.16 4,453,260 5,057,4585, 14
057,458
18. Dhaka Products NA NA NA 4,277,196 2,879,216 -33
19. Stone Crafts NA 29,9513 NA 2,236,513 2,387,819 7
20. Bamboo 222,4450 28,2924 26.05 1,794,174 1,891,230 5
21. Tea Na Na Na 3,095,414 9,923,233 221
22. Miscellaneous 5,509,318 4,192,737 -23.9 25,972,817 31,500,387 21
Good
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Total 2,364,239,04 686,834,55 -70.95 1,940,496,1 7,072,255,6 7
0 3 43 75
Source

Other Textile Products include products made from Rayon, Nettle,

Polyester, Velvet and jute
Miscellaneous Goods include goods/products other than
classified above
Source: Handicraft Association of Nepal

According to the analysis of the data the export

percentage of Nepalese Handicrafts has reduced by
70.95% in comparison with the past fiscal year. In the
past fiscal year (2058/59) the total Handicraft export
amounted to Rs 2,364,239,040 whereas the current
fiscal year (2059/60) shows the export amounting
686,834,553 only. In the past fiscal year, total Metal
Handicraft was Rs53233368 only. This shows that
export of Metal Handicrafts had decreased by 9.43%.
In the year (2060/61) the data up to 9 months the
export percentage of Nepalese Handicrafts export
amounted to Rs 1,940,496,143 whereas the current
fiscal year (2061/62) shows the export amounting
2072255675 only. In the past fiscal year, total Metal
Handicraft was Rs 215080424 whereas this year’s export
indicates the amount of Rs 242609525 only. This shows
that export of Metal Handicraft had decreased by 13%.

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 22. TOTAL
TABLE-2
Fiscal Year Export of Metal Percentage of Metal
Craft Craft Total Export
2055/56 178828654 13.80
2056/57 205818909 2.87
2057/58 226048719 3.31
2058/59 262708287 9.66
2059/60 276238090 10.82
2060/61 293065733 11.40

Fig.1
Metal Handicraft Export

350
Amount in million

300
250
200 276.23 293.06
262.7
150 226.04
205.82
100 178.82
50
0
2055/56 2056/57 2057/58 2058/59 2059/60 2060/61
Year

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 Fig.2
Percentage of Export of Metal Handicraft

16
% of Metal Craft

14 13.8
12
10.852 11.4
10 9.66
8
6
4
2
2.87 3.31
0
2055/56 2056/57 2057/58 2058/59 2059/60 2060/61
Year

Fig.3 Fig.3
Percentage of Export of Metal Handicraft

16
14
% of Metal Craft

12 13.8
10
8 10.82 11.4
6 9.66
4
2
0
2055/56 2056/57 2.87
2057/58 3.31
2058/59 2059/60 2060/61
Year

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Analysis of Table 1
During the 2060/61 the export of metal craft is
increased by 0.58%. In the past fiscal year Percentage of
metal handicraft was 10.82% whereas this year’s export
indicates 11.40.

Table 3. Country wise of Metal Handicraft

S.No Importing Value of Metal Total HAN % of Metal craft
Country Handicraft export export value
1 USA 39.97 332.93 12.00
2 Germany 16.4 156.61 10.47
3 Japan 11.01 145.35 7.57
4 Italy 7.11 122.79 5.79
5 France 11.34 91.31 12.41
6 Canada 5.51 95.36 5.77
7 India 14.98 68.05 22.01
8 Tibet 57.78 36.25 1.59
Source

Analysis of Table 2
The table shows the Country wise Export of Metal Handicraft.
Percent is based on Contribution of metal craft to Total export of
Handicraft Goods. The importing shows the value of Metal Handicraft
export.

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 Fig.4
350

300

250

200
Value of Metal Handicraft export
150 Value of Matal Handicraft Export

100

50

0
USA Germany Japan Italy France Canada India Tibet

Importing Countries

Fig.5
25

22.01
20

15

10 12 12.41
10.47

5 7.57
5.79 5.77

0
USA Germany Japan Italy Franc e Canada India Tibet
% of Metalcraf t in Total ex port 1.59

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 CHAPTER-III

Summary, Conclusion and Rcommendations

3.1 Summary
Handicraft is the major source of earning foreign
exchange and is exported to over 50 countries. Nepalese
Handicrafts are not only extraordinarily artful but also it
preserves the Nepalese culture and tradition. Because of
the Nepalese handicrafts, tourists visiting Nepal every
year thus it increases foreign currencies. Nepalese
Handicrafts attracts the foreigners so, every craftsman
as well as artisans should have the knowledge of
handicrafts. Today, the handicrafts product of Nepal is
not limited in name but they have got international
market. So the export of handicraft helps to develop the
country.
Metal craft is one of the most popular item of
handicrafts which includes different status of god and
goddesses and other artistic figures, filigrees, metal
utensils etc. Metal craft is household activities that are
why most of the man and woman work the house and
their business is almost at the home. This industry is
based on indigenous skills and resources. It doesn’t need
the technical knowledge overall. But, nowadays it needs
technical knowledge. Three cities of Kathmandu valley
viz .Patan, Kathmandu and Bhaktapur are the main
centers of the metal craft production. Out of city, Palpa
Bojpur and Pokhara are also produces the metal craft.

Patan is the city where the manufacturing core

of status cast in metal sculptures, export its products to
the world outside apart from serving the indigenous
market. In order to save this tradition from of art, the
government has opened up Patan Industrial Estate

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Where Metal casting is one of the industries among the
other Handicraft industries.
3.2 Conclusions
Handicraft plays the important role for exporting goods
to overseas market. Most of the artisans are illiterate
because they have to work at their home at their teenage so
their desire is to develop their skill at making statues with
different traditionally style. Because of illiteracy they don’t
have the knowledge of modern technology and unable to
expand their production. The artisans are god gifted. They
have skill but unable to expand their production due to lack
of financing problem. In the absence of proper training
facilities efficiency metal sector of Nepal is facing a big
problem of quality and price competition and design
modification.

There are few organizations that are trying to promote

metal crafts export of Nepal to overseas countries. HAN, TPC
are the major organizations. Among them HAN has so far
tried to promote metal craft export by making different
studies on the market countries. Publications of Handicrafts
magazines, rade directory, regular journal and bulletins,
collection of different trade information at HAN for the
interested, onducting workshop, seminars, making
arrangements for the participation in the international trade
fairs and exhibition are the major promotional activities
conducted by HAN.

If the Nepalese artisan is encouraged to adapt the

handicraft production their profession then the trend of
handicrafts as well as metal crafts will be more developed.
Handicrafts products will be popularize in the world by
preserving the Nepalese cultural heritage. To preserve them
Nepalese artisans should be well educated.

If support measures are provided for product design,

raw materials, physical facilities and finance, the metal craft
industry and trade will be popularize and can be the major

18
source of earning foreign exchange and helps in the further
development of country.

Nowadays Nepalese Handicrafts is going to developed by

giving knowledge of Handicraft Products. The present
condition for metal is well good because there is the training
facility regarding improved technology, use of new tools, and
equipment for for improved efficiency metal so it is said to
be in good condition.

3.2 Recommendations
Regular and sufficient availability of raw materials at a
reasonable price for the production of metal craft is of one
ethe most important needs. Government should check their
availability of raw materials whether it is at a reasonable
price for the productions of metal craft.
Packaging is also one of the important part of
promotion of product. An attractive and efficient packaging
can be a very good means of gaining prestige.
There is always the duplications and piracy of metal
crafts which reduces the export of original. Nepalese metal
crafts so, government should make plans and policies to stop
the export of these policies to stop the export of these
duplicated metal craft goods and protect the traditional
metal craft industry and craftsmen.
Appropriate training centers with modern and
sophisticated facilities should be setup for providing training
to the personnel associated with the metal crafts industry.
The trained craftsmen would enhance the design and quality
of the metal crafts goods.
Craftsmen are not well educated so the businessmen
get the more profit than craftsmen. The skilled, semi-skilled
and the unskilled workers engaged in the metal crafts
production and distribution should be always encouraged.
They should be given hopes and scopes for up lifting the
metal crafts industry.

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