Hike in Customs duty: Toy retailers stare at shortage in three months

While Mattel, Funskool, Hasbro, and Hamleys are impacted by the hike, none of them are part of the agitation yet

A national body of toy traders, United Toys Association, on Monday said there could a shortage of toys in three months if the government persisted with its decision to hike Customs duty on the product. 

To promote local manufacturing, Finance Minister Nirmala Sitharaman had increased Customs duty on imported toys from 20 per cent to 60 per cent during the Budget. This is the second hike in two years for toys. In 2018, the government had increased the Customs duty to 20 per cent from 10 per cent. 

Almost 85 per cent of toys in India are imported, while the rest is