Here is what I am using to make the cord for the bag handles:
It is a Pony French Knitter also called knitty knobby, knitting nancy, spool knitter…. The instructions that came with the thingummy weren’t too clear, but I found this excellent site with pictures and stuff.
Here is what the cord looks like. Magic, isn’t it?
Best of all, this toy is Made in India and for a change, it is actually available here. *clap vigorously* I got it for Rs 42 on my last trip to Hyderabad. (And yes, I do have rather a lot of lines on my palms.)