Stuck payment, discount: China puts Indian hair exporters in tough position

China has put Indian hair exporters in a tough position as Beijing has not released a payment of Rs 300 crore against their exports. Moreover, Chinese buyers, who account for 80 per cent of Indian hair exports, are asking exporters to ship hair at a discount of 40 per cent, reported The Economic Times on Tuesday.

The 40 per cent discount being asked by China will put pressure on the margins of Indian exporters, who sell hair at an average price of $150-$200 per kg.

“Many hair exporters have sent hairs to China without letter of credits. They have sent the hairs to third party bonded warehouse. Chinese buyers bought hairs from these warehouses. But in the process, the Indian exporters have not got their money. This has happened to exporters across India, but the worst affected have been those who are from West Bengal,” Sunil Eamani, member of Human Hair and Hair Products Manufacturers and Exporters Association of India and CEO of Indus Hair Extension told ET.

West Bengal is the major hub for the industry in India, followed by Andhra Pradesh, Tamil Nadu, and Telangana. For the global beauty market, raw human hair is mainly collected from households and temples in these states.

Two types of hair — Remy and non-Remy — are collected from these states. While Remy is best-grade hair collected from temples, non-Remy is a household waste collected by small groups of people.

India exports non-Remy hair to China. The US is the biggest market for human hair products which are popular among African Americans, Orthodox Jews, and fashionistas.

Speaking on the payment issue, Washim Akram, owner of West Bengal-based SAM Hair Exports, told ET, “We are pursuing with buyers in China, but with no result. We do not know when we will get our payment.” He added that now China is asking for a discount that is ‘putting pressure’ on exporters’ margins.

The Indian hair export market is around $1.5 billion, he told ET.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

supply hyperlink

What do you think?

Written by admin

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

Indian pharma industry eyes South American market, seeks greater access

Australia vs New Zealand, 1st ODI Live Score Updates: Adam Zampa Traps Devon Conway, New Zealand 2 Down