Traders Struggle To Stay Afloat

For the handicraft traders of the Golden Temple Chowk (Kwalkhu) and Patko in Patan, it has been the longest off-season in their living memory. Indeed, for a business, three years is a pretty long time, so much so that it can even sink a business established with decades of effort.

At Patan, the heart of Lalitpur, known as the city of fine arts and crafts, international tourists are hard to find these days, mainly due to the coronavirus pandemic. With tourism on the decline, the once booming handicraft trade is also in free fall.  

According to a trader, who has been in this business for the past 40 years, the 2015 Gorkha earthquake had quite an impact, but the impact was short-lived. The business is on the recovery path. Then came the coronavirus pandemic that shattered business. There's no difference between off-season and the season for our business these days, he said. "For the last three years, it has been one long off-season."

Another trader in the business for about 20 years pointed out: More than 50 percent of shops located alongside the street leading to Bagalamukhi from Patko have shut. It is hard to sell even one idol these days. These are the worst three years of my life. 

He vented his frustration thus: "Whether to keep the shop or sell it, I am unable to figure it out."

Another trader, giving continuity to the family business that started about three decades ago, said: Before the coronavirus pandemic, the profit would have been enough to pay the rent of the showroom and manage decent savings. Not anymore.

The trader said he pays Rs 40,000 in monthly rent for the showroom and accommodations. "The house-owner has been considerate, otherwise I would have to pay six months' rent in advance."  

These days, it is quite difficult to pay even the rent, forget the profit. The price of raw materials has increased by 50-75 per cent, he said, adding: Production of handicraft items has stalled also because of this factor.    

Government concessions on house rent have given traders like him some relief, though.

"In total, I have about Rs 65-70 lakh worth of goods here," he says, adding, "I am ready to sell it all." 

The thangkas are not selling, either. A trader based at Kwalko, who has been in this business for 15 years, said: The business has gone down 99 percent compared to normal times. Savings have enabled traders like us to keep going somehow.

For us, the entire 3.5-year period has been one long off-season.

“The decade-long Maoist insurgency was tough, but this one's tougher.”

The experiences of a contemporary art shop owner, in the business for about three decades, are quite similar.

According to him, the pandemic brought his business to nil (almost). The trader said: These days, 5-10 percent of normal trade is happening (after the end of lockdowns and shutdowns).

Fifty percent of handicraft shops in this neighborhood have shut down. The rest have been repenting for not shutting down.

Most of the traders are also not familiar with the EXIM code that the government has introduced for facilitating international trade in handicraft items. As there is no business and the future is uncertain, the traders see no merit in getting the code by paying fees.

Perhaps given hard times like these, Christian Novell Bovee said: When all else is lost, the future remains. 

Despite the grim trade scenario, handicraft traders feel this is the time to intensify promotional activities. They say the government should take the lead when it comes to promoting handicraft trade at the international level.   

Pushpa Ratna Shakya, former vice-president of, the Federation of Nepalese Chambers of Commerce and Industry (Lalitpur branch), stressed the need to organise trade fairs for the promotion of Nepali handicrafts.

Bhrikuti Mandap is the only venue we have for trade fairs, he said, requesting the government to manage more venues. “The government should come up with trade-friendly customs policies for handicraft trade promotion.”

Furthermore, Shakya's keen observation is that the tourism and handicraft trade scenario won't improve without the arrival of Chinese tourists – big spenders, who also happen to be major buyers of handicrafts -- in big numbers.

That will require the easing of travel restrictions in China.

Prachanda Shakya, president of the Federation of Handicraft Associations of Nepal (FHAN), said: "There are issues related to EXIM code renewal, with a hefty charge of Rs 10,000 imposed for failing to have the code renewed for more than nine months. The courier cost has gone up and so have the freight charges."

For handicraft promotion, the government should buy and use Nepali paper and other handicraft items instead of foreign products, he said, asking the government to create job opportunities for Nepalis in Nepal by promoting the handicraft industry. 

FHAN has given its suggestions during ministerial discussions on monetary policy, the FHAN president pointed out, adding that they have been lobbying with the government to address concerns about the industry.

While the traders seemed wary of the 'business-as-usual approach of the government, Spokesperson for the Ministry of Finance, Dhundi Prasad Niraula, said: Based on policy provisions on the protection, preservation, and promotion of handicraft, we are formulating working procedures and laws, conducting regular activities as well as taking action required to address the adverse situation.