The government is likely to grant a special package for traditional handicraft hubs in the foreign trade policy to be announced this month. It is learnt that traditional handicraft centres, including Saharanpur, Jodhpur, Barmer, Srinagar, Anantnag, Jaipur and Agartala, could be given the status of ?towns of export excellence?. The export-oriented units of these centres would be provided a package of Rs 100 crore each, a senior official of the textile ministry told FE. The funds would be used for upgrading technology, development of innovative designs and brand building.

Export Promotion Council for Handicrafts (EPCH) is opening 25 common facility centres at potential craft pockets across the country to provide a complete facelift to the handicrafts industry. These CFCs shall also include training facilities, testing facilities and design studios, said chairman of the council RK Malhotra.

EPCH, in collaboration with the office of development commissioner (handicrafts), has prepared a road map for not only addressing the current downfall, but also enhancing share of Indian handicrafts in the world market from the present 2% to 4%. The major bottlenecks have already been identified and measures have been ensured to address them.

Under the initiative, a pilot project comprising a common facility centre, technology upgrade centre, wood seasoning and chemical treatment plant and a training and marketing centre has been established in Saharanpur by EPCH. Saharanpur and Jodhpur would be developed as manufacturing centres for wooden photo frames. The segment has a world market of about $16 billion, of which India?s share is a meagre $3 billion.

Similarly, a raw material bank was inaugurated by textile ministry secretary Rita Menon on Monday. Another has been set up at Jodhpur. Items produced through semi-mechanised methods will have uniformity, better finish and cost-effectiveness, giving a competitive edge to Indian craftsmen in the international market.

Handicrafts exports from India stood at Rs 2,370.84 crore during April-July 2009-10, against Rs 2,785.16 crore during the same period in 2008-09, a decline of 27.32%.