Ludhiana cycle makers suffer due to SAFTA imports from China | chandigarh | Hindustan Times
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Ludhiana cycle makers suffer due to SAFTA imports from China

Cycle parts manufacturers are fuming over the inaction of central government over the severe loss to the local industry due to imports of Chinese goods from South Asian Free Trade Areas (SAFTA) countries.

chandigarh Updated: Feb 28, 2014 10:30 IST
Arjun Sharma

Cycle parts manufacturers are fuming over the inaction of central government over the severe loss to the local industry due to imports of Chinese goods from South Asian Free Trade Areas (SAFTA) countries.


There have been several rounds of meetings of the local cycle parts manufacturers with the officials of central government but no result has so far come out. SAFTA was formed to end trade hassles between some of the Asian countries.


However the local traders are annoyed with the inaction of the central government on entry of cycle parts from SAFTA countries that are actually made in China. These products that are also produced in Ludhiana are much cheaper.

Most of the goods including chain, rims, frame, rim lights among 10 cycle parts are now being manufactured in China and mostly imported from Sri Lanka and Bangladesh. This was causing a huge loss to the government of India as well as the cycle manufacturer in Ludhiana.

Badish Jindal who is the National President of federation of Associations of Small Industries of India (FASII) said that the import duty from these SAFTA countries was nearly 6.4 percent. "The import duty on cycle parts from China is 20 percent and assembled cycles is 30 percent" said Jindal.

He said that cycle traders do get benefited by importing cycle parts from these SAFTA countries but manufacturer are the sufferer in this process. He said that due to the better geographical location of these two countries, cycle parts are imported from there.

Rajeev Jain who is the General Secretary of United Cycle Parts and Manufacturer Association (UCPMA) said that there have been meetings between the manufacturers and officials of central government but so far no conclusion has come out. "Misuse of SAFTA route by China is causing a huge dent on the economy of Ludhiana industry. Government should take effective steps to stop imports of Chinese goods from Bangladesh and Sri Lanka" said Jain.

"The imports of cycle parts from China in year 2008 was Rs 300 crore whereas the export was Rs 1700 crore. However now importshave reached to Rs 1800 crore from China and exports have come down to Rs 1200 crore" said Charanjit Singh Vishwkarma who is the president of UCPMA.

But the government officials have a different view regarding the problem. Micro Small and Medium Enterprises (MSME) believes that it was the local industry itself that was promoting trade of cycle parts from SAFTA route due to cheap rates of these goods. Many cycle producing companies themselves import cheap cycle parts from these countries.

SS Dhillon who is the director of MSME, Ludhiana, said that the cycle manufacturers were asked to provide details of the Chinese manufactured parts that are being imported from Bangladesh and Sri Lanka to the central government. "However I am not sure whether the details have been provided so far or not" said Dhillon.

Interestingly there is only one cycle manufacturing industry each in Sri Lanka and Bangladesh that are getting the Chinese goods and forwarding it to India after replacing the packing. "Industries in these countries paste their made in stamps on the products as an eye wash to the customs in India" said Avtar Singh, general secretary of Chamber of Industrial and Commercial Undertakings.


Ludhiana: Cycle parts manufacturers are fuming over the inaction of central government over the severe loss to the local industry due to imports of Chinese goods from South Asian Free Trade Areas (SAFTA) countries.
There have been several rounds of meetings of the local cycle parts manufacturers with the officials of central government but no result has so far come out. SAFTA was formed to end trade hassles between some of the Asian countries.


However the local traders are annoyed with the inaction of the central government on entry of cycle parts from SAFTA countries that are actually made in China. These products that are also produced in Ludhiana are much cheaper.