The domestic manufacturers of sprinklers, balloons and colours, which are used extensively during the festival of Holi, are facing a touch competition from Chinese companies.
The local manufacturers based in Uttar Pradesh, Rajasthan, Madhya Pradesh and Gujarat are booking losses of almost 75 per cent with the Chinese products flooding the domestic market during the festival every year.
"There is a price differential of over 55 per cent between Chinese Holi colours and sprinklers and those made by Indian manufacturers," industry body Assocham Secretary General D S Rawat said on Tuesday.
He said the "invasion" of innovative and fancy Chinese Holi toys and colours despite the central government's efforts to promote 'Make in India' was making the survival difficult for the domestic manufacturers.
These findings emerged in a survey conducted by Assocham Social Development Foundation. Releasing the findings, Rawat said over 200 tonnes of 'gulal' was consumed across UP alone as the Braj region comprising Barsana, Gokul, Govardhan, Mathura, Nandgaon, Vrindavan and cities like Allahabad and Varanasi celebrated Holi and the festival has become quite popular with travellers.
As per a rough estimate, each year over 5,000 colour manufacturing units produced over 500 tonnes of 'gulal' for the pan-India market. Assocham representatives had interacted with over 250 manufacturers, sellers suppliers and traders of Holi colours, water guns etc for the study.
The respondents said traditional 'pichkaris' had almost disappeared from the markets due to minimal consumer interest, while 'Made in China' Holi toys and colours, although cheap and made from toxic products, were being preferred due to price differential.
Meanwhile, Assocham has urged UP to promote 'Holi tourism' as the annual festival attracted tourists from all over the world. It has suggested perking up infrastructure in all the major towns, that draw tourists throughout the year and thus need proper roads, power and water supply.