Eluru’s hairy tale

Smugglers eat into hair exports

Tresses from Eluru is losing its shine as the famed hair processing town is witnessing a lull in the market due to 40-50 per cent drop in export orders. Hair-raising facts emerge when you look into hair exports.

While India’s contribution to world market is 60 per cent, a major chunk of it comes from the Tirumala Tirupati Devasthanams (TTD) as lakhs of devotees tonsure their heads at Lord Venkateshwara temple. The board earned Rs 220 crore from the sale of tonsured hair last year. The hair collected here and all over India is processed at Eluru and is exported to over 35 countries.

Though India’s exports stand at a staggering Rs 3,000 crore, its contribution to wigs and value added products is meager 0.1 per cent. The industry experts feel that technological superiority has given an edge to China in the world markets.

KK Gupta, who started Srinivasa Hair Industries in Eluru way back in 1983, blames the poor quality of hair sold in auctions and organised smuggling across the border for loss in business. Gupta said the temple officials were not sensitive to the demands of market economy.

“The quality of hair is showing a sharp decline as the auctions are conducted only after accumulating huge quantity of stocks. As a result, hair is damaged as it’s not properly dried, segregated and combed before storing. Moreover, the officials expect hike in its price even if there is a dip in the market.”

He alleged that, “Smugglers book orders by train, download in Assam and route them to China without paying taxes. Every month 15 to 20 quintals of hair worth more than Rs 35 lakh is sent to Assam. The value of goods is under priced to avoid suspicion at Kacheguda and Secunderabad Railway Stations.”

Another drawback the industry faces is lack of technology know-how for manufacturing wigs, accessories and value added products. A few entrepreneurs from the State entered the branded market but they need the support of the Centre and AP government to nurture them.