The correct options are
A The demand for handicraft goods has declined.
B Raw materials are scarce as forests are being cut down for industries, infrastructure, etc.
D There are other products that serve the same function more effectively.
Handicrafts like basket making require the use of bamboo shoots and palm leaves from the forests. Since forests are cut down for government projects and other reasons, raw material required for the craft is scarce. Moreover, people in cities prefer branded items over locally produced goods. Therefore, handicrafts is not a profitable business anymore.