Country in which bag handles may be produced (10)
I believe the answer is:
bangladesh
'country' is the definition.
(I know that Bangladesh is a country)
'bag handles may be produced' is the wordplay.
'may be produced' is an anagram indicator.
'bag'+'handles'='baghandles'
'baghandles' with letters rearranged gives 'BANGLADESH'.
'in which' acts as a link.
(Other definitions for bangladesh that I've seen before include "Latest Test-cricket country" , "Bag handles (anag) - Commonwealth country" , "tourists, this year" , "Asian country, capital Dhaka" .)