An exhibition of Odisha’s handicrafts in Bhubaneswar. Telegraph picture

Bhubaneswar, July 23: The immense export potential of local handicrafts is not being tapped by the co-operative and government sector, which is falling behind private enterprises, craftsmen and private entrepreneurs have said.

What ails the public sector is lack of an aggressive business drive, managerial skills and adequate working capital, they felt.

“The problem with the state handicraft corporation is that they are not prompt in paying artisans or craftsmen, who need to spend a lot from their own pockets to create quality products. Moreover, the state-run Odisha State Cooperative Handicraft Corporation should provide subsidy to encourage craftsmen. Though we are getting assignments worth crores, we find it difficult to invest in quality stone for want of raw material. But, the government sculptors and other artisans are provided with low quality material,” said eminent sculptor Sudarshan Sahoo.

Ashok Kumar Sahu of the Odisha Rural and Urban Producers’ Association (Orupa) said the important factors for improving exports or domestic marketing are consignments that are ready to be shipped on time and quality products.

“But the remunerations to the artisans should be immediate. We pay our craftsmen immediately so that they deliver quality products. We recently exported 600 appliqué work pieces to the UK and 300 lampshades to the USA,” he said.

“The government-run bodies need to improve to survive in the market by being aggressive in production and designing,” he added.

The Odisha State Cooperative Handicraft Corporation (popularly known as Utkalika) was set up as an apex body of 109 primary handicraft co-operative societies with an objective to promote handicraft industries by helping them procure raw materials and market their products.

Utkalika was dealing with various handicraft items, especially stone carving items, silver filigree, tribal jewellery, patta chitras, textile products, appliqué and terracotta, which has a high demand in the export as well as domestic markets.

However, Utkalika, which has been operational since 1959, had almost turned sick by 2005-06 and was on the verge of closure because of continuous losses.

The accumulated losses now stand at Rs 3.95 crore, while the provisional liabilities were around Rs 6.65 crore till March this year. The loan burden amounts to Rs 2.74 crore, while the outstanding dues to suppliers and other creditors amount to around Rs 2.55 crore.

“Utkalika incurred continuous and staggering losses because of mismanagement, lack of professionalism and work culture, unproductive work force, supply of low quality products and dearth of working capital,” said a senior employee on condition of anonymity.

Burdened with recurring losses, Utkalika had an unviable staff strength of 173, who had not been paid their salary for two years. Six sales outlets were closed down.

The sick enterprise, which underwent a Department For International Development (DFID)-assisted restructuring process in 2005-06, had to drastically prune its staff strength from 173 to 94. Sixty-nine employees were given voluntary retirement. Utkalika still has surplus and unproductive workforce. Of the total 94 employees, 44 belong to class IV (mostly attendants and watchmen).

However, senior officials of the state handicraft and cottage industries said Utkalika had been on a revival path as a result of its restructuring. “The sales turnover has gone up from Rs 6 crore in 2007-08 to Rs 10 crore in 2011-12,” said director of the handicrafts and cottage industries N. Palai.

With a special grant of Rs 3.22 crore and other government grants, Utkalika cleared the arrear salaries of the employees and revamped its sales network, he said.

“There has been a positive improvement in the sick corporation. If this trend continues, it will ultimately become viable,” hoped the director.

“The restructuring has started yielding results. The loss-making corporation started earning profits from 2007-08. It first earned a profit of Rs 0.49 lakh, which went up to Rs 41.67 lakh last year,” said the corporation’s managing director Jagannath Mohanty.

The state government has entrusted the Xaviers Institute of Management, Bhubaneswar, with preparing a second phase restructuring and revival plan for the corporation.

A raw material bank has been set up at Pipili for appliqué artisans, while renovation of sales outlets are being undertaken at Mumbai, Calcutta, Rourkela and Puri outlets of Utkalika, said Mohanty.

Besides, steps are being taken to set up an export wing in Noida, dealing in Odisha’s three indigenous handicraft items (Pipili appliqué, Puri pattachitra and Konark stone carving) under geographical indicator registration (a patenting process) with the help of the National Institute of Fashion Technology (NIFT). Almost all outlets of Utkalika were renovated a couple of years ago.

“Our showroom was renovated around three years ago and ever since sales have improved. We had a couple of consignments worth Rs 4 lakh to Rs 5 lakh recently. Our products of silver filigree, stone carving, appliqué and patta paintings are quite popular,” said the Bhubaneswar manager of Utkalika, Sunakar Behera.

“We are still facing a funds crunch because of limited working capital. But we are taking steps to recover,” he added.