In a significant move to regulate the human hair trade, the Indian government has imposed an export ban on raw human hair priced below $65 per kilogram, as per a notification issued by the Directorate General of Foreign Trade (DGFT) on Monday. This policy shift tightens previous restrictions from 2022, which required exporters to obtain special authorisation.

New Export Policy and Smuggling Concerns

According to the DGFT notification, the export policy of raw human hair has been amended from "restricted" to "prohibited". However, exports will be permitted if the Free on Board (FOB) price is $65/kg or higher. The decision follows reports of large-scale smuggling of raw human hair to Myanmar and China, affecting India’s domestic industries and legitimate exports.

India is a major supplier of raw human hair, competing with China, Cambodia, Vietnam, and Myanmar. The illegal trade routes have negatively impacted the formal market, leading to this decisive action.

India's Major Human Hair Hubs

The human hair industry in India is centered in West Bengal, Andhra Pradesh, Telangana, and Tamil Nadu. The hair is collected from temples and households before being processed for domestic use and export.

Types of Hair in India: Remy vs. Non-Remy

India produces two main types of hair:

• Remy Hair: Considered the best quality, remy hair is collected from temples where pilgrims donate their hair as a religious vow. It is widely used for making wigs and hair extensions.
• Non-Remy Hair: This is household waste hair, collected and sorted by local workers before being sold to dealers.

Economic Impact of Hair Exports

During April-November 2023, India’s raw human hair exports totaled $123.96 million, reflecting a consistent demand in the international market. In 2023-24, the exports stood at $124 million, with Myanmar being the primary importer.

Industry Implications and Future Outlook

With this new policy restricting exports below the $65/kg threshold, domestic hair processing industries are expected to benefit, as smuggling routes are cut off. However, traders dealing in lower-grade non-remy hair may face financial strain.

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