Kathmandu, March 27 -- Handicraft exports tumbled by double digits in the first six months of the current fiscal year as manufacturers failed to fulfil orders due to a shortage of workers. According to the Federation of Handicraft Associations of Nepal, shipments dropped 10.64 percent year-on-year to Rs2.56 billion in the first half of the fiscal year (mid-July to mid-January).

"We were not able to fulfil orders due to lack of manpower working in the sector," said Dharma Raj Shakya, former president of the association. "Skilled craftsmen are going abroad." The country's export promotion policy is also not friendly towards the handicraft sector, he added.

According to him, the government provides a 5 percent cash incentive to handicraft ...