Indian manufacturers of colours, water guns and plastic toys are facing huge losses due to rising demand for Chinese products in the market
No matter how much we promote eco-friendly Holi and people resolve to stick to colours made from natural ingredients like kewara and tesu, there are a few who believe that the festival is meaningless without readymade paints and powders. So they are definitely spending money on them, but not on those that are manufactured locally, but the Chinese ones.
Chinese perfumed sprays, water guns and other plastic toys are selling like hot cakes. And as per the recent survey done by ASSOCHAM there is a sharp decline in small and medium industries (SME) units, forcing widespread job losses in the sector. The survey reveals that over eight to ten lakh people, who were engaged in the business of colour and plastic toys making, are suffering badly and lost their means of livelihood due to invasion by Chinese products.
As per the survey, nearly 1,000 SMEs have closed so far in the last two to three years with the rise in imports from China. The manufacturers, mainly from Allahabad, Brij Mandal (Agra, Hathras, Mathura and Vrindavan), Delhi, Kanpur, lucknow and Patna have closed down the production.
“For the past five years, the business of local sprinklers is decreasing due to stiff competition with Chinese sprinklers. They are facing huge loss, as small plastic sprinklers, colourful perfumed sprays made in China are available in the market”, said a local manufacturer and trader of sprinklers.
The only source of income that manufacturers have is by preparing toys, plastic goods and seasonal business of sprinklers but the Chinese invasion is causing a great threat to their daily earnings.
“At present, only 12 per cent of the total produced sprinklers have been sold and we still have to meet the cost of manufacturing”, added the manufactures.
A wholesaler of plastic toys opined, “Almost all the Chinese products of Holi have been sold out and local products that were purchased from manufacturers in low quantities are still remaining in the stock.” The last year, the ratio of sale of Chinese and Indian sprinklers was 80:20 but this year this ratio has changed to 95:5, reveals the survey.
Growing at a compounded annual growth rate (CAGR) of about 20 per cent, the Holi colour and accessories industry is likely to reach Rs15,000 crore this year. last year, Holi colour and accessories industry was about Rs12,000 crore.
The Holi accessory industry consisting of water guns, balloons is likely to reach Rs10,000 crore this year and herbal and perfumed colours industry is also likely to touch Rs5,000 crore this Holi.
“The Chinese products are comparatively expensive but they are available in different prices ranging from Rs10 to Rs1000, and fit the budget of people from all economic background”, shared 75 per cent of the retailers.
On other hand, the traditional plastic sprinklers are selling from Rs5 to Rs50, still urban people are not buying the local products and that is why retailers are preferring to sell the stock in villages.
Most of local product sellers have put a paper tag of “Made in China” to attract the maximum customers, added 75 per cent of the retailers. Chinese products for Holi are innovative as compared to local, they come in various shape and sizes, from the replica of a soft drink to funny goggles, elephant, cartoon characters, flute, watch, mobile phone, which mainly attract children, adds the survey.