ANNUAL ACTION PLAN

F0R DEVELOPMENT OF

HANDICRAFTS

OF

CUTTACK DISTRICT

FOR THE YEAR

2008- 09

PREPARED BY :

DISTRICT INDUSTRIES CENTRE,

CUTTACK

E.Mail :

Phone-0671-2344852, Fax: 0671-2343206

CONTENTS

Sl no / Description / Page
1
2
3
4
5
6
7
8
9
10 / INTRODUCTION
PRESENT TREND AND
FUTURE PROSPECTS
DISTRICT HANDICRAFTS PROFILE
MAJOR PROBLEMS IDENTIFIED
GOVERNMENT SUPPORT FOR
DEVELOPMENT OF HANDICRAFTS
CLUSTER DEVELOPMENT PROGRAM
PLAN FOR ARTISANS GROWTH
AND HANDICRAFTS DEVELOPMENT
FINANCIAL OUTLAY
STRATEGIC ACTION
CONCLUSION / 2
3
4
8
9
11
14
18
22
23

INTRODUCTION

Cuttack District has immense contribution to the history of Orissa. The headquarters town of Cuttack is the oldest and largest business centre of the State. It is well connected with all other districts of the State as well as with other States through roads and railways.

The district has rich tradition of handicrafts. The artisans of the district have been crowned with glory of manufacturing world class handicrafts. The main crafts of the district are silver filigree, Stone carving, Wood carving, Brass & Bell metal, Dhokra casting. Cuttackcity is famous for silver filigree and horn works. The stone statues produced by artisans of Lalitagiri in Mahanga Block have got wide reputation both in National and International market, but its opportunity for export growth to Japan, U.K, France is yet to be exploited.

The major problem of handicraft artisans is marketing of their products. Though the traditional artisans are capable of manufacturing world class handicrafts, they are languishing in poverty because of their incapability of marketing their products at higher price and arrangement of regular business orders for production. The machine made products of similar design with lesser cost have also been competitive.

The present day of science and technology with new market concept of International trade now inspires our artisans to have a broad view of utilizing power operated hand tools and small machinery for mass production of artistic handicraft products with lesser cost . Similarly the website and internet facilities with proto presentation of the crafts in the website are to be explored for attracting the National and International buyers for market access in domestic and export trade.

The initiative of Government for development of handicraft industries through Cluster development with engaging NGOs as Chas is a new strategy for development of handicraft industries. But lack of trade experience with CDAs, lack of accountability to Government on their part of inactive action and lack of response in the area of marketing and finance put the handicraft sector far from expectations of growth.

The alternative source of planned development of crafts through reactivation of Artisan Industrial Multipurpose Cooperative Societies ( AIMCS ) of each Block will be the appropriate strategyonhandicraft cluster development for mushroom growth of handicraft industries in the district with economic development of artisans on commercialization of their crafts production.

PRESENT TREND AND FUTURE PROSPECTS

The Indian handicrafts industry is on an upswing. The Industry provides direct employment to more than 6 million artisans throughout the country. Its annual production is estimated at around Rs 50,000.00 crore. Out of this, 31% i.e value of Rs 15,500.00 crore is exported every year. The Indian handicraft industry is changing rapidly to meet the requirement of overseas buyers. According to the available information of EPCH, there is a growing trend where handicrafts are looked upon as utility products and not just as decorative or gift items.

The handicraft industry is well spread across the country. In past years cluster development concept on handicraft have come up. It is definitely a new mile stone on development of crafts in the country. At present the bulk handicraft exports includes crafts like wooden art wares, stone statues, embroidered goods, marble and soft stone crafts, appliqué works, paintings, golden grass products, garden umbrella etc.The demand for overseas market is more for utility items,life style goods,and furnishing household items,where as comparatively less for antiques and decorative products. The key export destination for these goods are mostly the developed countries, including U.S,Germany, U.K, Netherlands, Sweden, France, Canada,Japan, Norway, Italy and Australia.

The Indian handicraft industry also faces tremendous competition from other developing countries including China, Taiwan, Korea, Philippines, Indonesia and Thailand.China ,for instance, produces machine - based products that are produced on a much larger scale, Where as india’s handicraft industry on the other hand is based on rural and cottage sector in the interiors of the country. However India has own strengths of designs, artistic skills, which is unique and specific to the Country.

According to the information from EPCH source, the World market for handicrafts is estimated at around $247 billion and it is growing @ 5%per annum. At present India’s share in the world market is less than 2%, but its export is growing consistently by more than 10% annually.

In Orissa about one lakh artisans are deployed in different crafts and their annual production handicrafts is worth of Rs 143.00 crore. Cuttack district is proud of having about 4000 artisans engagedin different crafts having annual production of Rs 5.25 crore.The crafts such as stone statues, Dhokra,Appliqué, Wood carving,Paintings,Golden grass,Garden umbrella are being exported to France,Belgium,Netherlands,Japan,UAE,USA and UK through Vizag port .

This sector needs infrastructure development on :

Opening of Indian handicraft pavilion in foreign countries.

Presentation of products in International trade exhibitions in different countries .

Opening of handicraft pavilion in metro cities of the country.

The future of our handicrafts looks bright.

DISTRICT HANDICRAFTS PROFILE

1. Name of the District Cuttack

2. Geographical area : 3932 Sq.km

(a) No. of Blocks : 14

(b) No.of villages : 1966

(c) No.of Artisan Villages : 210

3. Population (2001 census )

Male : 12,08,000

Female : 11,33,000

Total : 23,41,000

Artisans Population : 6,000

Artisans currently engaged

in the craft : 3831

4. Major Handicraftsand

Annual production :

Name of the
Craft / 2006 - 07 / 2007-08
Artisans
( nos ) / Production
(Rs in Lakhs ) / Artisans
( nos ) / Production
(Rs in Lakhs )
Silver filigree / 605 / 117.46 / 640 / 128.75
Wood carving / 550 / 86.24 / 578 / 94.85
Cane & Bamboo / 500 / 30.63 / 525 / 33.80
Terra Cotta / 477 / 40.96 / 500 / 45.00
Jute craft / 250 / 7.76 / 250 / 8.40
Dhokra casting / 180 / 8.16 / 190 / 8.90
Brass & Bell metal / 390 / 115.42 / 370 / 125.45
Golden grass / 210 / 14.85 / 220 / 16.25
Stone carving / 230 / 19.13 / 240 / 21.15
Appliqué / 108 / 13.12 / 113 / 14.50
Art leather / 80 / 12.90 / 84 / 14.00
Patta chitra / 42 / 3.85 / 45 / 4.25
Soft toy / 35 / 0.77 / 37 / 1.10
Palm leaf products / 25 / 3.67 / 26 / 4.10
Jarimali / 12 / 2.40 / 13 / 3.00
TOTAL / 3694 / 477.32 / 3831 / 523.50

4. Identified Handicraft Clusters of the District :

Sl.no / Name of the
Cluster / Name of the Craft / No of Craft
persons
1 / Lalitagiri / Stone carving / 126
2 / Bhatimunda / Brass & Bellmetal / 420
3 / Badabarsingh
Ransinghpur / Dhokra Casting / 105
105
4 / Tarat / Golden grass / 42
5 / Cuttack town / Silver Filigree
Wood carving
Horn works / 840
84
42
6 / Talbasta / Cane & Bamboo / 95
7 / Panimal / Woolen Carpet / 73
8 / Phulpokhari / Tera cotta / 189
9 / Dadhapati / Art Leather / 189
TOTAL / 3360

5.(a) Handicraft Cluster DevelopmentTaken up :

Details / Location / Artisans
engaged
in nos
Dhokra Craft Cluster / Barbarsingh
Badamba Block / 4 SHG - 60
Dhokra Craft Cluster / Ransinghpur
Narsinghpur / 4 SHG – 60

5.(b) Handicraft cluster already sanctioned to be taken up

in the year 2008-09.

Details of the cluster. / Location / Artisan to be engaged / Amount
sanctioned
Bellmetal cluster / Bhatimunda of Tangichoudwar Block / 2 SHG- 30 members / 2,24,500/-
Art leater craft cluster / Dadha patana of Baranga block. / 3 SHG- 45 members / 3,34,750/-

6. Rehabilitation of Handicraft Artisans (RHA) :

Year / Handicrafts Artisans
( RHA )
( in nos) / Subsidy
Rs in Lakhs
For the year 2007-08 / Nil / Nil
Provision for the year 2008-09 / 50 / 2.5

7. Status of Handicraft Cooperatives:

Status / Nos
Working / 14
Defunct / 02
Under Liquidation / 44
TOTAL / 60

8. Handicraft Training :

Sl no / Description / Place / Craft / Intake
capacity / Remarks
1. / Rajnagar training School / Rajnagar
Athagarha Block / Cane
Bamboo / 20 / Non Plan
2. / GhasiputTraining school / Ghasiput
Banki – II Block / Cane & Bamboo / 12 / Non Plan
3. / Utkal Balashram Training Centre / Nuapatna
Cuttack CMC / Stone & Wood Carving / 10 / Plan

9. Exports prospects of

major Handicrafts :

Stone Carving

Silver Filigree

Wood Carving

Appliqué

Patta Chitra

Cane & Bamboo Crafts

10. Constraints and Suggestions for

Export growth of Handicrafts :

The Artisan Industrial Multipurpose Cooperative Societies (AIMCS) of each Blocks have to be reactivated on Handicraft Cluster Development programme rather than entrusting the work to NGOs, who lack trade experience, lack of accountability for work performance and lack of response in the area of marketing and finance.

The present system of marketing of the Handicraft products by the Artisans in local markets is not encouraging for sustaining thecraft as not remunerative for commercial existence. The domesticand export market of quality Handicrafts are to be explored for sustenance of the Craft.

Handicraft products of ongoing export through the guidance of Export Promotion Council for Handicrafts are to be identified.

The Quality standards of design and drawing of accurate standard specifications of crafts are to be maintained by the Artisans.

Skill up gradation training to artisans is being imparted but it is to be correlated for manufacture of export standard as per specification of EPCH.

  • The Industries Promotion Officers need to be trained in the National Handicraft institutes and have to be well conversant on EPCH programme and polices. They can act as CDAs in handicrafts clusters for reality in handicrafts development of the district rather than engaging the NGOs as CDAs who have hiring interest of planed motives.

The frequent interaction of Artisans/CDA and Handicraft Export Houses and EPCH are required for manufacture of Exportable items on different crafts and sustenance of handicrafts on commercial footings. Artisans also requires constant orders for regular supply chain.

MAJOR PROBLEMS IDENTIFIED

Following are some of the major problems on development of handicraft industries in the district :

  1. Lack of existence of regular Market Channel

Marketing support for handicrafts is an essential input for its promotion and growth. Artisans face the difficulty of their regular sale excepting on participating in stalls on festive occasions of Ratha jatra, Bali jatra, Laxmi jatra, local festivals and in few district and State level exhibitions. Due to the problems for marketing , the artisans are not interested for more production and interested for the changing the profession for better livelihood.

2. Lack of Commercial viability of the Craft

The industrial activity on manufacture of craft and its sale in regular channel is to be

commercially viable for sustaining the activity. Lack of demand in the rural market

necessitates the push sale leading to lower price with higher cost. Thesocio economic

status of artisans are very poor ,for which they are unable to store the crafts for a longer

period to sell the crafts at urban centres for higher price.

  1. Lack of Accessibility to Raw-materials

The scarcity of the most of the raw materials and in time availability of raw materials to the

rural artisans create problem on continuing their craft production.

  1. Inadequate Credit flow

Most of the Banks are reluctant to finance the artisans due to lack of regular marketing of

the crafts and poor socio economic status of the artisans.

5. Lack of adequate Technology Intervention

The traditional handicrafts need to be modernized in certain stages of production

process

for massive scale of production for enhancing the productivity of the artisan and reducing

the cost of production. The modern crafts are to be utility items rather than decorative or

gift items.

  1. Lack of required Infrastructure

The Artisans are poor entrepreneurs . State owned infrastructure are their basic

amenities for their survival and growth. Common facility centre for joint work space,

quality testing,raw material bank, finished goods godown, design training, buyers sellers meet at common place are the minimum infrastructure for any handicraft growth centre. Lack of this facility also restricts the development of craft.

GOVERNMENT SUPPORTFOR

DEVELOPMENT OF HANDICRAFTS

Handicraft and Cottage Industries are mainly artisan based or known as house hold industry. After independence the Central Government and State Government have shown keen interest in their Five Year Plans for development of artisans on promotion of traditional craft activities to strengthen the rural economy.

The Directorate of Handicrafts & Cottage industries at the State level, District Industries Centre at the District level and Industries Promotion Officers at the Block level are the Nodal agencies of the State Government and responsible to look after the development of handicraft industries.

Various Government support services are :

Skill up gradation/skill development.

Technology up gradation.

Product diversification/product development.

Development of infrastructure.

Marketing support.

Raw material support.

Advertisement and publicity.

Credit arrangement from financial institution.

Mobilization of artisans to form Self Help Groups/Co-operatives.

Marketing support for handicrafts is an essential input for its promotion and growth. For boosting market of handicrafts items,measures are being taken to organize exhibitions almost round the year at different places of the State as well as outside .

Government Incentives and Benefits for

Developmentof Handicraft Industries under

the Provision of Orissa Industrial Policy – 2007:

The State Government in Industrial Policy – 2007 have declared a number of incentives for promotion of handicraft industries in the state. The major incentives are :

  • VAT exemption on finished goods of Handicraft Industries. ( Para 18.1 )
  • Electricity duty exemption for 5 years. ( Para 20.1)
  • Patent registration on assistance up to Rs 5.00 lakhs. ( Para 21 )
  • GovernmentLand at concessional rate. ( Para 16 )
  • Marketing support on price preference of 5% on purchase by Government and Government undertakings. ( Para 13.4 )

Important Schemes implemented for development of Handicrafts :

  • Grant of assistance for setting up training cum production centre.
  • Training to Master craftsman.
  • Design development programme.
  • Assistance to Handicraft Cooperatives.
  • Assistance to individual artisans.
  • Development of Clusters.
  • Skill training to Artisans of Handicrafts.
  • State level Handicraft award.
  • State Handicraft design competition award.
  • Award to Master craft person.
  • Craft village scheme.
  • Craft development centre.
  • Pension scheme to craft persons.
  • Baba Saheb Ambedkar Hasta Silpa Yoyana (AHVY).
  • Rehabilitation of Handicraft artisans with bank finance including subsidy of Rs 5000/.
  • Coverage of artisans under Janshree Vima Yoyana and

Rajib Gandhi Swasthya Bima Yoyana.

  • Photo identity card of Artisans.

Finance by Commercial Banks on Development of Handicrafts:

The Commercial Banks through different refinance schemes of NABARD and SIDBI are providing required finance to Handicraft Industries .

  • Finance through formation of Self help Group of artisans ( SHG finance).
  • Direct finance to Individual Handicraft Artisans.
  • Finance through handicraft cooperatives.
  • NABARD is now imparting skill up gradation training to handicraft artisans.
  • Artisan Credit card scheme.
  • Setting up Handicraft enterprise on PMRY & REGP scheme of financing.

CLUSTER DEVELOPMENT PROGRAMME

From time immemorial some of the crafts are produced by group of artisans concentrated in one village or in same locality, thus cluster has been formed. The Craft wise Clusters to be developed in the district in phased manner is given below:

Sl
No / Name of
the
Cluster / Name of the Block / Name of the
Craft / No of Craft
persons
engaged
1 / Lalitagiri / Mahanga / Stone carving / 126
2 / Bhatimunda / Tangi Choudwar / Brass & Bellmetal / 420
3 / Badabarsingh
Ransinghpur / Badamba
Narsinghpur / Dhokra Casting / 105
105
4 / Tarat / Salipur / Golden grass / 42
5 / Cuttack
town / Municipal
Corporation / Silver Filigree
Wood carving
Horn works / 840
84
42
6 / Talbasta / Banki / Cane &
Bamboo / 95
7 / Panimal / Kantapara / Woolen
Carpet / 73
8 / Phulpokhari / Baranga / Tera cotta / 189
9 / Dadhapati / Baranga / Art Leather / 189
TOTAL / 3360

CRAFT WISE CLUSTER DEVELOPMENT PROPOSED FOR NEXT 5 YEARS:

Name of the craft. / 2008-09 / 2009-10 / 2010-11 / 2011-12 / 2012-13
Stone carving / -- / 4SHG -60 / -- / 4SHG – 60 / --
Brass & Bellmetal / 2SHG -30 / -- / 4SHG -60 / -- / 4SHG - 60
Dhokra casting / -- / 4SHG – 60 / -- / 4SHG – 60 / --
Silver filigree / -- / -- / 2SHG – 30 / -- / 4SHG – 60
Cane & Bamboo / -- / 4SHG - 60 / -- / 4SHG - 60 / 4SHG – 60
Teracotta / -- / 4SHG - 60 / -- / 4SHG - 60 / --
Art leather / 3SHG - 45 / -- / 4SHG - 60 / -- / --

REMEDIAL MEASURES FOR SUSTENANCE OF THE CLUSTER

Reality of cluster development is far from expectation due to non involvement of NGOs on providing market support, raw material arrangement, Bank linkage etc. The NGOs are mainly interested to take up the skill development training of the cluster development scheme with the object of business motive rather than promotion and growth of cluster for long term sustenance as the main object of the scheme. The main deficiencies of NGOs in this programme are :

* Lack of skills on imparting training, lack trade experience, lack of account

Accountability for work performance and lack of response in the Area of marketing and

finance.

* Lack of interest to provide market support, rat material arrangement,

Bank linkage etc as required for sustenance of the cluster.

* Lack of accountability for deficiencies of their work for cluster development

After completion of their trainings and fund released from Government.

It is experienced that involving NGOs in handicraft cluster development is a wiser aspect for growth of handicrafts. It will be vital to utilize the skill set of DIC on cluster development programme in each and every stage of the problematicneed of artisans. This willfacilitate the growth of cluster and development of handicrafts. The following suggestions are given below.

The Artisan Industrial Multipurpose Cooperative Societies (AIMCS) of each Blocks have to be reactivated on entrusting Handicraft Cluster Development programme rather than entrusting the work to NGOs.

The Industries Promotion Officers can act as CDAs in handicraft clusters for reality of handicraft development of the district .

A qualified young commerce Graduate is to be appointed as cluster

Manager at least for three years on a consolidated salary of Rs.5000/-

Per month to look after the central marketing, central raw material

Procurement, Bank linkage and exploiting of export market etc. He will

Be the staff of AIMCS and will work under the direct supervision and

Control of IPO as CDA . This is necessary as artisans arfe not literate and

Unable to compete individually in the present business trend of

Commercial footing.

A Godown cum cluster office is to be taken on rent at the cluster site

All the expenses of cluster excepting the production inputs are to be

Borne by the Government at least for three years on expecting the

Artisans direct access to their regular market channel, permanent