Made-In-China Toys Get About 30% Dearer After The Centre’s Ban As Wholesalers And Retailers Start Hoarding Stocks
But toy manufacturers and retailers are divided over the ban. Predictably, those who sell Indian toys are happy, while those whose business depends on Chinese toys are worried they’ll be out of a livelihood.
As a wholesaler says, “Six months is a very long time. I used to sell toys worth Rs 5 lakh a day. My sales have now dried up to Rs 1.5-2 lakh and that too by holding on to the stock. But for how long can I go on?’’
“There hasn’t been a single incident in India of a child either dying or falling sick after playing with Chinese toys. Neither have battery-operated Chinese cars been known to explode,’’ says Imran Mustafa, who imports and sells Chinese toys at Rani Toys, Kolkata. “At least the Chinese toys which arrived in the country before January 24 should be allowed to enter,’’he says.On an average, says Mustafa,a big importer orders 20-30 containers a month. “This ban without giving people any notice and most importantly without a logical explanation — the notification says it is ‘issued in public interest’— has left us wondering what will happen tomorrow.’’
Importer Babulal Agarwal says the ban will not solve any purpose as there are no quality standards. “There is no point blaming a product because it is of a particular origin. If you don’t have standards, you cannot call a product inferior or superior.’’
Not everyone is adversely affected.“We will actually benefit as we manufacture and sell Indian toys,’’says Khursheed Ahmed,from the customer service department of ZP Toys, Andheri. At Kemps Corner’s popular showroom, Toy Kingdom, business won’t be hit much as it has a limited number of Chinese toys.
But there is confusion about whether the ban extends to assembled toys or components as well. A source in the ministry of micro, small and medium enterprises says, “By implication, the ban should extend to components. But they may also have uses in other industries.’’ The buzz over toxic elements has also left parents worried. Some are extra vigilant, others oppose a blanket ban. “We may ban Chinese toys, but what if toys from other parts of the world contain toxic substances,’’ asks Anisha Seth, mother of a five-yearold and a three-year-old. “If the government has proof Chinese toys are toxic, I see nothing wrong with the ban. But if the ban is to protect Indian manufacturers, then I don’t think it’s right,’’ feels Hetal Adukia, the mother of a twoyear-old. But many are weeding out Chinese toys from their kids’ closets. “I feel it’s better to spend more on quality toys than expose my children to health hazards,’’ says Alviya Shah, mother of a seven-year-old and a twoyear-old. She has even stopped gifting toys to other kids.
THE BAN
In a circular dated January 23, 2009, the Centre banned the import of China-made toys for six months, without citing a reason for the same. The ban, notified by the Directorate General of Foreign Trade, is seen as related to concerns of the safety of such toys and also as a temporary protection to domestic toy manufacturers reeling under the onslaught of cheap imports.
WHAT IT MEANS
The ban covers wheeled toys, dolls, stuffed toys, toy guns, wooden and metal toys, musical instruments, electric trains and puzzles. There is however ambiguity on whether the ban also extends to toy components sourced from China. The move is expected to hit several wholesalers and retailers who depend on imports from China.
TIMES NEWS NETWORK
Rs 2,500 cr Total size of toy industry Rs 1,000 cr Organised sector Rs 1,500 cr Unorganised sector Percentage of toys imported from China: 60 % (Source: Toy Association of India)
Holi may not be the same this year if Friday’s six-month ban on toys imported from China is implemented strictly. After all, most pichkaris are made in that country. While Holi is still more than a month away, importers, wholesalers and retailers, worried about the impact that the ban will have on their livelihood, have started hoarding stocks and inflating prices by about 30 per cent.But toy manufacturers and retailers are divided over the ban. Predictably, those who sell Indian toys are happy, while those whose business depends on Chinese toys are worried they’ll be out of a livelihood.
As a wholesaler says, “Six months is a very long time. I used to sell toys worth Rs 5 lakh a day. My sales have now dried up to Rs 1.5-2 lakh and that too by holding on to the stock. But for how long can I go on?’’
“There hasn’t been a single incident in India of a child either dying or falling sick after playing with Chinese toys. Neither have battery-operated Chinese cars been known to explode,’’ says Imran Mustafa, who imports and sells Chinese toys at Rani Toys, Kolkata. “At least the Chinese toys which arrived in the country before January 24 should be allowed to enter,’’he says.On an average, says Mustafa,a big importer orders 20-30 containers a month. “This ban without giving people any notice and most importantly without a logical explanation — the notification says it is ‘issued in public interest’— has left us wondering what will happen tomorrow.’’
Importer Babulal Agarwal says the ban will not solve any purpose as there are no quality standards. “There is no point blaming a product because it is of a particular origin. If you don’t have standards, you cannot call a product inferior or superior.’’
Not everyone is adversely affected.“We will actually benefit as we manufacture and sell Indian toys,’’says Khursheed Ahmed,from the customer service department of ZP Toys, Andheri. At Kemps Corner’s popular showroom, Toy Kingdom, business won’t be hit much as it has a limited number of Chinese toys.
But there is confusion about whether the ban extends to assembled toys or components as well. A source in the ministry of micro, small and medium enterprises says, “By implication, the ban should extend to components. But they may also have uses in other industries.’’ The buzz over toxic elements has also left parents worried. Some are extra vigilant, others oppose a blanket ban. “We may ban Chinese toys, but what if toys from other parts of the world contain toxic substances,’’ asks Anisha Seth, mother of a five-yearold and a three-year-old. “If the government has proof Chinese toys are toxic, I see nothing wrong with the ban. But if the ban is to protect Indian manufacturers, then I don’t think it’s right,’’ feels Hetal Adukia, the mother of a twoyear-old. But many are weeding out Chinese toys from their kids’ closets. “I feel it’s better to spend more on quality toys than expose my children to health hazards,’’ says Alviya Shah, mother of a seven-year-old and a twoyear-old. She has even stopped gifting toys to other kids.
THE BAN
In a circular dated January 23, 2009, the Centre banned the import of China-made toys for six months, without citing a reason for the same. The ban, notified by the Directorate General of Foreign Trade, is seen as related to concerns of the safety of such toys and also as a temporary protection to domestic toy manufacturers reeling under the onslaught of cheap imports.
WHAT IT MEANS
The ban covers wheeled toys, dolls, stuffed toys, toy guns, wooden and metal toys, musical instruments, electric trains and puzzles. There is however ambiguity on whether the ban also extends to toy components sourced from China. The move is expected to hit several wholesalers and retailers who depend on imports from China.
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