HomeRetail NewsToy prices set to go up; traders warn that stock may be exhausted within 3-4 months

Toy prices set to go up; traders warn that stock may be exhausted within 3-4 months

Toy traders and retailers demonstrated against the Narendra Modi government’s decision to increase import duty on toys from 20 to 60 percent in Mumbai on Monday.

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By Abhishek Jha  February 19, 2020, 6:29:43 AM IST (Updated)

Toy prices set to go up; traders warn that stock may be exhausted within 3-4 months
Toy traders and retailers demonstrated against the Narendra Modi government’s decision to increase import duty on toys from 20 to 60 percent in Mumbai on Monday.


Traders claim that the increase in import duty, announced in Budget 2020, might lead to a 100 percent surge in the retail price of existing toys in India, which means a toy costing Rs 500 will be priced at Rs 800 to Rs 1,000 after the imposition of 200 percent hike in import duty. Moreover, even after the hike, traders claim that there will be a scarcity of toys in the next 3-4 months.

Farooq M Shabdi, President of newly formed United Toys Association explained, "It is estimated that within 3-4 months after the hike in import duty on toys, there will be a scarcity of toys in India. The reason being, India imports 85 percent of its annual toys requirement from other countries and only 15 percent of the annual requirement of toys are manufactured in India. Traders and retailers will not be able to bear such a high import duty and stop importing toys. On the other hand, Indian manufacturers will not be able to fulfill the overwhelming demand for toys and in the next 3-4 months the stock of toys will be exhausted."

The government's budget proposal is a bid to balance trade deficit by including toys in the non-essential commodity. However, toy traders argue that more than 5,00,000 people will lose their livelihood if this happens.

According to the toys association, the most impacted will be innovative toys which include STEM toys, robots, flying toys and radio control, and battery-operated toys.

The protesters have demanded that the Indian government treat toys as an essential commodity, akin to educational books for children as they argue that in the modern age, toys help kids as a learning tool.

The traders have decided to issue a memorandum to the government, appealing to revoke the decision of increasing import duty.
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