GUWAHATI, June 18 – Indian industries are facing stiff challenges following free flow of third country products across the international border. The problem in the North East is more apparent as most of the markets are being flooded by these cheap products, posing a serious threat to the Indian industries.
The third country products are generally brought from Myanmar and then sold to different markets as per demand of the people. Porous Indo-Myanmar border and lack of enforcing agencies are helping the traders to run their business without any hindrance.
In Guwahati, three markets-Paltan Bazar, Fancy Bazar and Ganeshguri are flooded by the third country products. The products include – toys, garments, shoes and electronic items mainly manufactured in China are sold in the markets at a throw away prices for which the demand of Indian products are decreasing.
“In Guwahati, lakhs of rupees Chinese products are sold daily in different markets”, said Anil Barman while sharing his views with this correspondent. According to him Indian products cannot compete the prices of Chinese ones and as result of which customers are preferring these cheap goods. “If unabated flow of Chinese products are not checked then Indian industries will face tough time”, he cautioned. Barman who runs a shop in the Ganeshguri market in the city appealed to the State Government to take necessary action to prevent free flow of Chinese products into the region. Barman is not alone; there are several shop owners who are facing problem while selling the Indian products to the customers.
The Indian toy industry, which contributes a huge chunk of revenue annually to the Government, is hard hit due to the free flow of Chinese toys. The Rs 3000 crore industry has decided to cut it’s production during the current year for poor market.
According to available information, these third country goods are smuggled from Myanmar and Nepal through different points and then sent to various destinations in the country. But in the case of North East the Chinese goods are generally brought from Namphalang of Myanmar through Moreh.
Though there is a provision in the present Exim Policy to impose anti-dumping duty on the third country products, yet no organization has lodged any complaint so far in this regard. In view of free flow of the Chinese goods, the North eastern States are learnt to have incurred a huge revenue loss as there is no proper record of these goods at the entry points in the border.
Commenting on the prevailing situation, the Joint Director of Foreign Trade, Sri MK Mero informed that the Commerce Ministry had already taken up the matter with the Finance Ministry to take preventive measures in this regard. In this connection, he said that anti-dumping duty had already been imposed on the ‘Chinese pencil batteries’ after receiving complaints from different traders associations. “We are now closely monitoring the situation in the North East”, Mero added. Concerned at the free flow of the third country products, the Manipur Government has apprised the situation with the Commerce Ministry to take up the matter with the Myanmar Government to check the flow of the Chinese products.