Chinese Holi products adversely affecting Indian local market

22 Mar 2016 | By Ramya

Ahead of Holi, local makers of traditional Holi colors and sprinklers have been severely hit by Chinese-products entering the market.

An ASSOCHAM survey stated that Chinese-made Holi products were being sold in greater quantities than locally-made products in Rajasthan, Gujarat, Uttar Pradesh and MP.

Despite 'Make in India' efforts, local manufacturers couldn't even sell a quarter of their products facing losses of over 75%.

In context: Chinese colors dampen local makers' Holi

2013 Impose restrictions on Holi's imports from China: ASSOCHAM

ASSOCHAM Secretary General, DS Rawat had stated that there was a need to restrict the import of Holi colors and toys from China.

He questioned the need to import Chinese-products when similar products were already made in India .

He added that over 1000 SME-units were forced to shut down due to the import of Chinese-products which dominated the market in the past years.

Made In ChinaWhy are inexpensive Chinese colors bad?

Holi-the festival of colors had taken the color out of the local-makers' business of traditional Holi products since the Chinese-made products had debuted in the Indian market.

Skin-harming chemicals like alkalis, acids, diesel, glass powder, mica, and engine oil are used in Chinese products.

National Association of Street Vendors stated that vendors consider only the demand for the colors but, compromise on the quality.

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22 Mar 2016Chinese Holi products adversely affecting Indian local market

Holi celebrated with great zest in UP

Every year, over 5,000 local-units manufacture about 5 lakh kilograms of ‘gulaal’, and over 2 lakh kilograms is used in Uttar Pradesh. ASSOCHAM suggested the UP-government to promote ‘Holi Tourism’ as it is celebrated with a large enthusiasm in the state.
Cheap products: Not only price but also quality

22 Mar 2016Cheap products: Not only price but also quality

ASSOCHAM stated that Chinese Holi colors and sprinklers are innovative and cheaper by upto 55% than those made by local manufacturers.

ASSOCHAM Secretary General said that the above price difference is the reason behind people preferring Chinese products.

However, he added that skin-harming chemicals are used in the 'cheaper' Chinese products that thrashed the products of local-makers, who were into the business from decades.

22 Mar 2016Good quality comes at a cost!

Most of the local makers of Holi colors and toys claim that they sell colors that are natural, organic and skin-friendly.

The ASSOCHAM analysis-cum-survey stated that traditional colors, balloons, and toys have vanished from the markets due to lack of interest and demand.

The survey conducted among 250 traders revealed that rise in the cost of raw materials like water-soluble-plant-pigments had slowed their business.

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Natural Celebrate safe, green Holi with natural colors

Manufacturers of natural Holi colors claim that their products could replace the harmful chemical-laden colors in the market.

Colors which are made using natural products like dry flowers, leaves, fruits, turmeric, sandalwood, and plant extracts are skin-friendly and a bit expensive, unlike the Chinese-alternatives.

Consumers of natural, organic colors also claim that the colors ensure safety and that skin-harming Chinese products must be avoided.