Calls for ban on exporters of raw human hair grow louder

HYDERABAD: Human hair products manufacturers and exporters have demanded that the Centre and director general of foreign trade (DGFT) impose total prohibition on raw human hair exporters.
Though restrictions have helped increase legal trade by around 3,800 crore, only a few firms benefited by getting licences, while small exporters have been impacted.

India is also loosing employment opportunities as raw human hair is exported. If it is processed here, it will create more jobs, they claimed.
In a letter to additional director-general of foreign trade Subhash Chandra Agarwal, the Human Hair and Hair Products Manufacturers and Exporters Association of India said: "Unfortunately, due to the restriction, several small exporters of raw human hair have to rely on exporters' adept at getting licences."
The small exporters have to sell it to them at a discounted price. Data reveals that top five exporters were handling over 70% hair exports. Chinese companies have started unfair trade practices such as bonded warehoused-based sales and were further squeezing the Indian exporters as the raw human hair was freely available, it stated.
"The prohibition of export of raw human hair will give employment to lakhs of people. DGFT should lower the limit to 10 firms temporarily. The Centre should provide guidance in establishing village collection centres, thus reaching full collection potential up to 50,000 tons instead of the current collection of 10,000 tons. The government should also facilitate buyer-seller meets between Korean and Indian firms," the Association urged DGFT.
"Licences should not be granted to 84 exporters, including the top four against whom criminal proceedings have been initiated by Enforcement Directorate (ED), who have smuggled the goods to Myanmar by under invoicing," it added.
"Require proof of purchase, including copy of bank transfers, to eliminate purchase of raw hair through the ill-gotten money from hawala as per GST norms. Request the proof of settlement of payments of the previous shipment, as a precondition to issue licence for the next shipment," they said in the letter.
"Impose 30% export duty on raw hair to give parity to the Indian industry to be able to counter the export incentives given by Myanmar and Chinese governments. This will act as a disincentive to the Chinese, who are using the illegal route to avoid import duties in their country," it added.