The Union govt has imposed a ban on export of raw human hair priced below $65 per kg and a notification was issued by the Directorate General of Foreign Trade (DGFT) on Monday.
The DGFT notification stated that the export policy of raw human hair has been amended from restricted to prohibited.
However, exports shall be allowed freely if the Free on Board (FOB) value is $65 or above per kg.
The move comes after TOI report, ‘Govt Intervention Sought to Curb Hair Smuggling’, on Feb 3 exposed the smuggling of raw human hair to Myanmar and China that severely affects local industries and legal exporters.
But the DGFT notification has not gone down well with human hair legal exporters.
They want the cap to be increased to $90 per kg to ensure there is no smuggling as that’s roughly the current market price.
According to them, setting a lower limit at $65 will only encourage traders to undervalue shipments or resort to illegal exports, defeating the purpose of regulation.
The Indian Human Hair & Hair Products Exporters Association had earlier appealed to Union finance minister Nirmala Sitharaman, urging strict measures to curb the illicit trade.
They argued that unauthorised exports led to scarcity in the domestic market, affecting manufacturers and exporters who rely on regulated trade.
This is not the first time the govt has imposed restrictions on human hair exports. In Jan 2022, similar curbs were placed, but smuggling continued.
India is one of the largest suppliers of raw human hair, with Telangana, Andhra Pradesh, Tamil Nadu and West Bengal serving as key hubs for collection. Raw human hair is mainly sourced from households and temples in these regions to cater to the global demand for wigs and hairpieces.
There are two primary types of hair collected – remy hair, which is of superior quality and obtained from temple donations, and goli hair, which is collected from households, segregated, and then sold to dealers.
India is one of the largest suppliers of raw human hair, with Telangana, AP, TN and West Bengal serving as key hubs for collection.
