Imported Rakhi products from China to take Rs 4,000 cr hit: Traders' body

Traders' body Confederation of All India Traders (CAIT) expects that imported 'Rakhi' products from China worth an estimated Rs 4,000 crore will take a hit ahead of the upcoming Raksha Bandhan festival to be celebrated on August 3.

CAIT expects this to happen on the back of its boycott Chinese product campaign.

The traders' body said that an estimated Rs 6,000 crore of goods are sold each year during the of Raksha Bandhan festival in which China alone contributes about Rs 4,000 crore.

"In the last few years, China-made Rakhis and other products essential for making Rakhis such as foam, pearls, drops, thread, decorative thali etc. have captured a significant share in the Indian market," CAIT said in a statement.

"Amid the backdrop of the faceoff between China and India in the Galwan Valley, the anti-Chinese sentiment among the buyers and sellers have started to show its effect as the demand of locally produced Rakhis have increased," it added.

According to CAIT, buyers are showing interest in local products and are willing to pay a higher price for Rakhis made out of India sourced materials instead of China sourced products.

CAIT said that as per an estimate, about 50 crore Rakhis are sold every year in India, amounting to about Rs 6,000 crore, out of which China's exports alone are valued at about Rs 4,000 crore.

"This year, China is sure to get a big jolt amounting to Rs 4,000 crore of business loss," the statement said.