The prime minister office (PMO) gave repeated directive to the land ministry asking it to allocate land for a private sector initiative to establish a design and research institute to cope with the modern design and retain export market.

In the wake of continuing export fall, Bangladesh Handicrafts Manufacturers and Exporters Association (Banglacraft) sought land to build a National Handicraft Design and Research Institute for design development.

Handicraft product exports fell to $4.35 million in 2003-2004 down from $4.75 million in 2002-2003 and $5.25 million in 2001-2002.

At the eighth meeting of national committee on exports in 2002, the prime minister asked the land ministry to allocate a 0.12 acre land at Kakrail to the association for establishing the institute at a token price of Tk 50,001, sources said.

Assessing the value at Tk 1.79 crore, the land ministry declined the directive arguing that there is no provision in government rules to allocate land to private organisations at a concessional rate.

Seeing no progress, the PMO at the 10th meeting of national committee on exports on May 22, 2003 again asked the land ministry to hand over the land but to little effect. Reminded by the association, the PMO again wrote to the ministry on August 24 this year and the ministry few days back came up with same reply opposing the concessional rate.

President of Banglacraft ABM Ruhul Quddus Shahnewaj has refuted the ministry claim saying that the government can allot its land to private organisations at any rate for an institute which would benefit the country.

"We are lagging behind due to lack of research on design and diversification. Still our domestic handicraft market is soaring up ticking at Tk 1,000 crore annual turnover. Export is now declining because Bangladesh handicrafts cannot keep pace with changing global design trend," Banglacraft president said.

He said handicraft factories and sales centres are scattered in the country. So, overseas buyers cannot get the complete picture of handicraft items on their short visit to Bangladesh.

"We will have a display and sales centre at the proposed institute which will showcase all types handicraft products from allover Bangladesh," Shahnewaj added.

Producers in China, the Philippines, Vietnam, Thailand, Nepal, India and Sri Lanka even offer free air tickets and accommodation facilities to woo foreign buyers, said Shahnewaj, also the proprietor of Jahanara Cottage Industries Ltd.

Talking to The Daily Star Shahnewaj said Manila University offers doctorate degree in bamboo-made basket. Research is going on in those countries for product development to boost export.

"But Bangladeshi products are in same state of 1980s. While Bangladesh's total handicraft export is $4.35 million, a lone Filipino company exports $3.5 million worth basket a year.

The Banglacraft president said they got assurance from donors and the 250 association members would also contribute for establishing the institute once they get the land.

Bangladesh presently exports basket ware, candle, shopping bag, potteries, recycled glass, musical instrument, chopstick and other handicraft items to the US, Canada, the EU, Japan, Australia and New Zealand. The sector employs around 37 lakh people.