Systemic Vulnerabilities and Resilience Gaps: An Expert Analysis of Challenges Facing Kerala\'s Traditional Handicraft Industry

Abstract

Kerala’s traditional handicraft industry, a vital custodian of the state’s cultural heritage, is currently facing deep systemic and structural challenges. Although it provides livelihoods to nearly 1.7 lakh artisans, the sector suffers from raw material shortages, financial exclusion, and poor institutional coordination. Intense competition from cheap, machine-made products and rising labour costs has weakened the market for authentic crafts. Artisans mostly from socially and economically marginalised communities struggle with irregular incomes, limited access to credit, and declining interest among younger generations. Moreover, fragmented policy implementation and inadequate infrastructure, such as the lack of Common Facility Service Centres, further constrain productivity and quality. Addressing these issues requires integrated strategies that ensure affordable material access, strengthen cooperative-based microfinance, retain skilled human capital through stable incomes, and promote authenticity-led branding and cultural tourism. Such coordinated efforts are essential for revitalising the sector and safeguarding Kerala’s traditional craftsmanship for future generations.

Introduction

Kerala’s handicraft industry represents a living cultural heritage shaped by centuries of craftsmanship, supported by the region’s biodiversity and availability of natural materials. Despite its cultural significance and economic importance—employing nearly 1.7 lakh artisans across 32 traditional crafts—the sector faces growing structural and socio-economic challenges. State agencies such as SURABHI, HDCK, and KADCO play a vital role in sustaining the industry, especially since most artisans belong to socially and economically disadvantaged communities. This makes the sector not only an economic contributor but also an essential instrument of social welfare, requiring policies that balance commercial growth with inclusive protection for vulnerable artisans.

Key Challenges

1. Market Disruption and Competitive Pressures
   The industry is increasingly threatened by cheap, machine-made products, high production costs, and shifting consumer preferences toward contemporary designs. Artisans often lack access to design training, credit, and marketing support, making it difficult to adapt to modern demand. Export volatility, high logistics costs, and limited digital literacy further weaken global competitiveness.

2. Supply Chain Fragility and Raw Material Shortages
   Access to essential raw materials like wood and bamboo has become difficult due to scarcity, rising costs, and strict forest regulations. Small artisans struggle with complex procurement systems, lack of transparency, and insufficient infrastructure for quality testing and modern production. This fragile supply chain disrupts production continuity and undermines product quality.

3. Human Capital Erosion and Socio-Economic Marginalisation
   The sector faces severe skill depletion as younger generations abandon traditional crafts due to low wages, unstable income, and poor social recognition. Migration of skilled artisans to urban areas reduces intergenerational knowledge transfer. Informal working conditions, lack of social security, and inadequate access to common facility centres deepen vulnerability and hinder productivity.

Overall Insight

Kerala’s handicraft sector is at a critical crossroads. While rich in heritage and potential, it is hindered by competitive pressures, resource scarcity, declining artisanal skills, and fragmented institutional support. Sustaining this culturally significant industry requires coordinated interventions that ensure raw material security, strengthen market access, modernise production infrastructure, and—most importantly—protect the livelihoods of the socially vulnerable artisan community.

Conclusion

The Kerala handicraft industry is currently operating within a precarious environment defined by five intersecting systemic failures: intense market pressure from cheap mass-produced goods and dynamic shifts in consumer design preference; chronic instability and high costs in the raw material supply chain; a critical failure in human capital retention leading to irreversible knowledge loss; persistent financial marginalization due to limited institutional credit access; and a pervasive gap between stated policy intent and effective scheme implementation. The reliance of the sector on socially and economically vulnerable groups necessitates that solutions move beyond passive welfare schemes toward active, integrated value-chain management and social stabilisation.

References

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Copyright

Copyright © 2025 Dr. Manjula KG , Rameesa H . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.