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Kohinoor Mandal

KOLKATA, July 24

IT is now the turn of domestic torch light manufacturers, both in the organised and unorganised sectors, to feel the heat of imports from China.

Starting from November last year, these cheap Chinese torch lights are being imported into the country in huge quantities. Of the total torch imports, more than 90 per cent came from China.

These torches are coming in all sorts of configurations, but in all the cases, the value of these products are under- priced, and as a result, all are under-invoiced.

As a result, not only the prospects and potential of the domestic industry are being affected, the national exchequer is also losing heavily.

However, there is hardly any organisation of torch light makers to promote the industry's cause, except the Delhi Sadar Bazar Torch Manufacturers Association.

The association has decided to request the Union Commerce Ministry to fix a floor price for the import of these torches.

It will also urge the Government to check these imports and ensure that all mandatory practices are being followed by Indian traders selling these Chinese items.

The organised torch light sector has three or four major players. It produces about 15 million torches, worth Rs 110 crore, a year. The unorganised sector, with over two dozen manufacturers, produces six million pieces worth Rs 25-30 crore.

Mr Subir Chaki, President of the association, said that the premium sector of the torch light market, which consists of brass torches, has also been affected.

According to him, uneven competition from Chinese products has already killed the unorganised players. It is hitting the organised players now.

According to him, brass look-alike torches made of sheet metal are being imported into India at unbelievable prices like Rs 5-6 per piece.

Even the quality of the bulb and the switch is nowhere near to that of the Indian torches. These products are then sold by Indian wholesalers at around Rs 20-23 per piece.

"The import price is available on the import documents. It is an unrealistic price. We have investigated and found that the cost of producing even such a poor quality torch in China is about Rs 30 per piece,'' Mr Chaki told Business Line.

Leading domestic torch light brands include Eveready, Geep, Nippo and Novino, with Eveready alone with a market share of 70 per cent. The worst hit are the unorganised players.

Mr R.K. Gulati, a leading player in the industry and Secretary of the association, said that the most of the producers have stopped producing torches. "They have started other businesses,'' he said.

These Chinese products are imported mostly through Kolkata and Mumbai ports.

Mr Chaki also alleged that these importers are using a `tele-text route' to make payments to the Chinese producers.

"I have personally visited the Chinese producers. They made a similar offer to me. Though I am not completely sure of this payment mechanism, still I feel that it might be the hawala route,'' he said.

The association has calculated that the approximate loss to the national exchequer is about Rs 41 crore. It includes loss on account of import duty, countervailing duty and special additional duty.

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