Indian hair exporters are facing trouble with China as payments of Rs 300 crore is stuck in the country and they are uncertain when they will be paid.
Chinese buyers, who account for 80 per cent of Indian hair exports, are also putting pressure for a 40 per cent discount on shipments.
“Many hair exporters have sent hairs to China without letter of credits. They have sent the hair to third party bonded warehouse and Chinese bought it from there. 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 told The Economic Times.
West Bengal is the major hub for India's hair export industry besides Andhra Pradesh, Telangana and Tamil Nadu, the report said.
Two types of hair are collected in India - remy and non-remy hair. Remy hair, the best grade, is collected from temples where pilgrims donate their hair as part of a religious vow. This quality is mainly used to make hairpieces and wigs.
Non-Remy hair is a household waste collected by small groups of people in villages and cities. They segregate that and sell to dealers. This is the hair that China imports from India, the report added.
“We are pursuing with buyers in China, but with no result. We do not know when we will get our payment,” Washim Akram, owner of West Bengal based S. A. M Hair Exports, told the publication, adding that the Chinese demand for discount on hair exports is putting pressure on their margins.
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