The Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) sought Chief Minister N. Chandrababu Naidu’s intervention for stopping the export of raw human hair, especially non-remy (comb waste/ Goli/Chutti) hair, to mainly China, and some other countries in order to safeguard the domestic human hair industry.

In a representation to the Chief Minister on July 11, AP Chambers president Potluri Bhaskar Rao stated that the demand for non – remy hair had gone up exponentially in the last two decades. 

The Chinese were buying huge quantities till 2012-13 from Indian exporters but in the last 10 years, they started reducing legal imports by smuggling non-remy (comb waste hair) through Myanmar, Bangladesh, and Nepal, where it is processed with child labour and again smuggled to China to avoid duties. 

Despite an earlier ban imposed in March 2022 by the Director General of Foreign Trade, exports continued,  including by the previously blacklisted traders. 

Non-remy hair forms 85% of total exports and only 15% of hair is remy hair, which is sourced from temples and sold in auction/direct sales by them. 

Mr. Bhaskar Rao pointed out that the Indian human hair extension and wig industry, currently valued at approximately ₹8,000 crore, has the potential to grow to ₹30,000 crore over the next decade. 

The industry, which has a major presence in Eluru and Madepalli in Eluru district, provides employment to over 10 lakh women.

Following are the suggestions made by the AP Chambers: to strictly prohibit the export of raw human hair (having ITC (HS) Code 05010010) to make it available for Indian hair processors for value-addition, not to let remy type hair from temples sold to China or Chinese agents, restrict temple hair auctions to registered manufacturers / exporters and not to illegal traders.

Also, the AP Chambers stated that a dedicated research chair for human hair be set up at IIT Chennai to foster R&D, duties on human hair imported by countries with which India has bilateral agreements should be reduced, and incentives/subsidies  must be given to those exporting hair to African countries as they are biggest consumers of hair and wigs as the move would help boost the hair exports to those countries.

The hair industry is a unique one that transforms waste into valuable foreign exchange while empowering lakhs of women through rural employment, Mr. Rao said, adding that the CM should take up the matter with the Union Ministry of Commerce & Industry to ensure the sustainability and growth of the human hair industry in Andhra Padesh.