CHAPTER I

1. Introduction

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 modem artists. It is an art or
craft needing skill with hands.

Handcraft is the occupation of making by hands usable products graced with

visual appeal. It is the method of doing or constructing 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, basketry,
pottery, ornamental, metal working, jewellery leather working and wood working.
Handicrafts are not usually done with machines but rather with 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 these 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 human nature and their feelings, which
has been accepted widely. Handicraft whole include 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 handicrafts.

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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 organizations. 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 has 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 than 2000 years."

Nepalese People used to produce handicrafts goods usually in volume with

more or less standard quality so, the Nepalese people have developed its culture and
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. Likewise, little
did he know that the stones he used as his facilitating object 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 metals which was
otherwise not offered by the crude stone objects. It was perhaps after the discovery of
these metals that man increasingly refined their senses and developed their tastes

2
shapes and figures of objects which to later give birth to a different profession
altogether called metalwork 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 the art of metal casting originated, flourished and clustered.

During the 13th century when Araniko finished making copper statues of 'Sung
Emperor' it looked so perfect that china were very impressed, they expressed very
sincere and deep appreciation for his artistic genius.

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 casted 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, this is relatively more
expensive than copper is also known as Kasa. Like Bronze, brass or 'pittal' 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 pieces in return and is locally known as 'maina'
and is made from the combination of bee- wax and incense powder of Sal 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 form the mould.
Thereafter they are plastered wholly with a paste that is a combination of cow dung

3
and mud. The same 'maina' 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 comers too. However the bigger 'mainas' need at least 5 coatings.
Thereafter, these dices are left to dry in the sun. It is to be reminded here that this
process is not used in the monsoons for the dried in the sun. However some of the
craftsmen do continue with the process in room temperature thereby taking more days
for plastered 'maina' 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 molten 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 pieces 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
castings. These accomplished products of casted metals are further 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 engraved 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 statues 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 Metal 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 hom knife called (silayko)

xyi A flat wooden hammer

xvii 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 exporter order could be affected

f) If a letter of credit is opened on the exporter's name,

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 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

i) Documents required for export

j) Commercial invoice certified by HAN

k) Packing list 1) Certificate of origin

m) Nepal Rastra Bank declaration form

n) Certificate from HAN

o) Advance payment of letter of credit

p) Authorization letter

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.formA

u) No objection letter from HAN for products made from the parts of
domestic animals.

v) Recommendation letter from 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 chance 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,

6
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.

1.6 Objectives of Study

1 To promote the handicraft product & analyze the trend of metal crafts.

2 To encourage Nepalese artisans to adopt handicraft production as their

profession by preserving Nepalese cultural heritage and to popularize it in
the world.

3 To figure out the present condition of metal handicraft.

4 To presents various data regarding the export of Nepalese Metal crafts

and its role in the overall export trade of Nepal.

1.7 Significance of Study

Metal Handicrafts plays a significant role in the foreign trade of our country.
Nepalese handicrafts especially Metal 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 the availability of 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.

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.

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1.8 Limitations of Study
The limitations of study are as follows:-
1) This study does not include other handicrafts that are exported to other
countries.
2) This 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 Valley
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 analyze 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 export 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,
Newsletters & 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 form. The tabulated data have also been presented graphically. It shows
the change trend of Metal Handicrafts Export in a simplest form.

1.9.2 Data Processing Technique

The flowing are the data processing technique.
a. On the basis of observation and review, format for the data collection were
prepared.
b. Required data were collected 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. 1 Presentation of Data and analysis

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

Table: 1
Export of all Handicrafts 2059/60 to 2062/63
% change %
Product Name 2068/69 2069/70 2068/69 2068/69
S. N. (+/-) change
e (+/-)
1. Pashmina 2060120389 413067961 -79.95 535,712,857 552,347,119 3
2. Woolen Goods 67,408,844 48,613,430 -27.88 335,705,373 396,385,778 18
3. Silver Jewellery 54,672,913 52,472,745 -4.02 269,861,636 282,442,650 5
4. Handmade Paper 50,567,347 46,605,111 -7.84 199,065,833 199,261,353 0.10
Products
5. Metal crafts 58,776,206 53,233,368 -9.43 215,080,424 242,609,525 13
6. Silk Products 83,366,630 10,211,775 22.49 111,624,285 95,297,987 -15
7. Cotton Goods 16,385,322 17,505,082 6.83 88,121,510 73,321,028 -17
8. Wood Craft 10,230,644 7,187,861 -29.74 49,224,580 50,588,484 3
9. Hemp/Allo Goods 4,065,602 4,682,668 15.18 28,268,284 43,850,775 55
10 Leather Goods 7,025,104 12,211,376 73.82 17,108,724 17,227,210 1
11. Incense 3,394,647 2,844,200 -16.22 12,597,644 15,226,166 21
12. Pauba (Thanka) 3,351,492 4,646,756 38.65 10,202,518 15,330,783 50
13. Ceramics products 1,203,776 2,082,068 72.96 8,714,618 13,182,467 51
14. Bone $ Horn 3,237,669 2,663,482 -17.73 7,575,792 10,270,967 36
Products
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 2,360,114 1,554,016 -34.16 4,453,260 5,057,458 14
18. Dhaka Products NA NA NA 4,277,196 2,879,216 -33
19. Stone Crafts NA 29,9513 NA 2,236,531 2,387,819 7
20. Bamboo Products 22,4450 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
Total
Good 2364239040 686834553 -70.95 1,940,496,14 2,072,255,67 7
Source: Handicraft Association of Nepal 3 5

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 Other Textile Products include products made from Rayon, Nettle, Polyester,
Velvet and Jute Miscellaneous Goods include goods/products other than classified
above.

Analysis of Table 1
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 (2059/60) the total Handicraft export amounted to Rs 2364239040 whereas
the current fiscal year (2060/61) shows the export amounting 686834553 only. In the
past fiscal year, total Metal Handicraft was Rs 53233368 only. This shows that export
of Metal Handicrafts had decreased by 9.43%.

In the year (2061/62) the data up to 9 months the export percentage of

Nepalese Handicrafts has increased by 7%. In the past fiscal year (2061/62) the total
Handicraft export amounted to Rs 1940496143 whereas the current fiscal year
(2062/63) shows the export amounting 2072255675 only. In the past fiscal year, total
Metal Handicraft was Rs215080424 whereas this year's export indicates the amount of
Rs 242609525 only. This shows that export of Metal Handicrafts had decreased by
13%.

2.2 Total Export Value of Metal Crafts

Table: 2

Total Export value of Metal Handicrafts for F/Y 2057/58to 2062/63

Fiscal Year Export of Metal Craft Percentage of Metal Craft

in Total Export
2057/58 178828654 13.80
2058/59 205818909 2.87
2059/60 226048719 3.31
2060/61 262708287 9.66
2061/62 276238090 10.82
2062/63 293065733 11.40
Source: Handicraft Association of Nepal

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 Figure : 1
Export of Metal Craft

Figure : 2
Percentage of Export of Metal Handicraft

16
13.8
14

12 11.4
10.82
% of Metal Craft

9.66
10

4 2.87 3.31

0
2056/57 2057/58 2058/59 2059/60 2060/61 2061/62
year
%of Metal Craft in Total export

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 Figure: 3
Percentage of Export of Metal Handicraft
16

14 13.8
12
11.4
10.82
10 9.66
8

4
3.31
2.87
2

0
2056/57 2057/58 2058/59 2059/60 2060/61 2061/62
year
% of metal craft

Analysis of Table 2
During the 2061/62 the export of metal craft is increased by 0.58%. In the past
fiscal year Percentage of metal handicrafts was 10.82% whereas this year's export
indicates 11.40.

Table: 3
Country Wise Export of Metal Handicrafts
(in Million)
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: HAN Newsletter

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Analysis of Table 3
The table shows the Country wise Export of Metal Handicrafts. Percent is based on
Contribution of metal craft to Total export of Handicraft Goods. The importing country
shows the value of Metal Handicraft export.

Figure: 4
Graphical Representation

25
22.01

20

15
12 12.41
10.47
10
7.57
5.79 5.77
5
1.59

0
USA Germany Japan Italy France Canada India Tibet

% of Metalcraft in Total export

Figure: 5
Graphical Representation

350

300

250

200

150

100

50

0
USA Japan France India
Importing Countries

Total Handicraft Export value of Metal Handicraft Export

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2. 3 Major Findings
The percentage of metal craft in total export is maximum i.e. 13.80 in
the fiscal year 2056/57 in comparison to following years.

There is decreasing trend in the percentage if metal craft in total export

but rate of diminishing is some what increasing i.e. 13.80, 2.87, 3.31,
9.66, 10.82 & 11.40 from fiscal year 2056/57 to 2061/62 respectively.

While studying the total export value from fiscal year 2056/57 to
2061/62 is 178828654, 205818909, 226048719, 262708287, 276238090
and 293065733 respectively.

From the fiscal year 2058/59 to 2059/60, the export of Metal

Handicrafts had decreased by 9.43%.

Similarly, from the fiscal year 2060/61 to 2061/62 the export of Metal
Handicrafts had decreased by 13%.

While analyzing country wise export of Metal Handicraft, India is at

the top level by 22.01%.

However Tibet is at the low level by 1.59%.

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 CHAPTER III
3. Summary, Conclusion and Recommendations

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 items of handicrafts which include different
statues of god and goddesses and other artistic figures, filigrees, metal utensils etc.
Metal craft is a household activity thats why most of the man and woman works at 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
Bhojpur and Pokhara are also produces the metal craft.

Patan is the city where the manufacturing core of statues cast in metal sculptures,
exports its products to the world outside apart from serving the indigenous market. In
order to save this traditional from of art, the government has opened up Patan Industrial
Estate 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 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

15
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, trade directory, regular journal and
bulletins, collection of different trade information at HAN for the interested,
conducting workshop, seminars, making arrangements for the participation in
international trade fairs and exhibition are the major promotional activities conducted
by HAN.

If the Nepalese artisans are encouraged to adopt the handicraft production and 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 source of earning foreign exchange and helps in the further development of
country.

Nowadays Nepalese Handicrafts is going developed by giving knowledge of

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

3.3 Recommendations

Regular and sufficient availability of raw materials at a reasonable price for the
production of metal crafts is of one of the 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 parts of promotion of product. An attractive

and efficient packaging can be a very good means of gaining prestige.

16
 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 craft industry.
The trained craftsmen would enhance the design and quality of the metal craft 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
craft production and distribution should be always encouraged. They should be given
hopes and scopes for up lifting the metal craft industry.

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 BIBLOGRAPHY

Shrestha, B.P., (1967) 'An Introduction to Nepalese Economy', Kathmandu.

Handicraft Association of Nepal, (2039), Reports on Development of Metal

Handicraft of Nepal.

Nepal Travelers Magazine, (2005), Volume 16. No 1. JAN-FEB

Trade Promotion Center, 'Nepalese Arts & Handicrafts' Kathmandu, Nepal

Trade Promotion Centre, (2029), Commodity profile: Handicraft, Kathmandu

Metal Handicraft Association of Nepal, (2004/05), Annual Report..

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