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Before the second world-war, Office of the Superintendent of the Cottage Industries was established in 1947, it was expanded into Office of Director of Industries and Directorate of Industries in 1956. In 1972, Directorate of Industries was transferred to the Ministry of Industry and its title changed to The Cottage Industries Corporation.

In 1974, it was shifted again to the Ministry of Co-operatives to support the industrial sectors and the co-operative societies. The title was also amended to the present title of "Cottage Industries Department ".

The Cottage Industries Department was upgraded to ensure involvement in developing of Small and Medium Enterprises in terms of organizational structure and responsibility since 1997. Formerly, the Cottage Industries Department had merely one office in Yangon, whereas at present, it expanded into two branch offices each in Yangon and Mandalay, serving as technical assistance focal points for the entrepreneurs who are in need of technology. With a view to promote the cottage industries, the State Law and Order Restoration Council enacted Cottage Industries Promotion Law No.13/91 in 1991. Cottage Industries are encouraged to register voluntarily at The Cottage Industries Department according to this new promotion law and a total of 7462 industries have been successfully registered as of March, 2004. Requirements for the cottage industries are also assisted fully according to the provisions of the law and within the capacity of the Department.
 

Aims and Objectives
Here under mentioned are the Aims and Objectives of establishment of The Cottage Industries Department:-
  1. To register cottage industries according to Cottage Industries Promotion Law, and undertake promotion activities to help cottage industries development and to systematically set up commercial enterprises.
  2. To supervise weaving schools in States and Divisions, and Lacquerware Technology College at Bagan.
  3. To provide technical services and technologies to industrial co-operatives, cottage industries and traditional handicraft enterprises.