The Hindu Business Line : Export council seeks ban on Chinese handicrafts

New Delhi, June 21 On the heels of the Government extending a ban on Chinese toys and dairy products, the Export Promotion Council for Handicrafts has sought an immediate ban on import of Chinese handicrafts as it is sounding a death-knell for the artisans and the industry.

Mr Raj Kumar Malhotra, Chairman of the council, said that the industry still has not been able to come out of recession and the unabated import of Chinese handicrafts has only added to exporters’ problems. It has resulted in loss of over 100,000 jobs in the sector’s seven-million workforce.

Global impact

“Chinese have not only invaded the Indian markets with their machine-made similar products manufactured on a big volume, but have also made a dent into the global markets, particularly the US and Europe, (which are) the major markets for Indian handicrafts — with their cheaper products giving a tough competition to Indian suppliers,” he added.

Over 25 per cent of the total handicrafts export from India, mainly from major clusters such as Moradabad, Jaipur, Jodhpur, Saharanpur and Narsapur, enter the US and Germany, contributing about 14 per cent, while the UK accounts for 10 per cent of the exports kitty.

According to data compiled by the Council, import of handicrafts items from China stood at Rs 1,040.03 crore during 2007-08 against Rs 792.98 crore in 2006-07. In 2008-09, handicrafts exports almost halved to $1.79 billion.

Other demands

The industry is also looking to approach the Government for granting equal status to handicraft sector like the Export Oriented Units, which enjoy duty-free imports including capital goods income exemption for 10 years and refund of Central Service Tax on goods sourced from the domestic tariff area.

Among other demands were the inclusion of all items of handicrafts in ‘Vishesh Krishi and Gram Udyog Yojana’, availability of pre- and post-shipment finance for 360 days to exporters of handicrafts at LIBOR rates, and increase of interest subvention to 4 per cent.

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