Increased Import Duty on Bamboo Sticks

Bamboo is a natural resource and an eco-friendly material. Bamboo is renewable and grows in abundance. Bamboo can produce a wide range of products, including furniture, flooring, toys, and cookware. Bamboo is widely used in India as a raw material for various agricultural & industrial applications. There were various Reasons To increase the import duty on bamboo sticks. The increase in duty will encourage domestic manufacturers to use bamboo sticks as raw materials instead of importing bamboo sticks from China and Myanmar. 

 In The Agarbatti Industry, “what type of bamboo is used for agarbatti” is studied in this article, along with the increased import duty on the bamboo.

What type Of Bamboo is Used for Aggarbatti:-

Aggarbatti or incense sticks are the most popular incense used in India. Bamboo is widely used in India as a raw material. These are made from bamboo and herbs mixed or rolled together in a cone shape, referred to as “sticks”. They are then dried out and roasted on special pans using wood fire to a light brown appearance. The sticks roll over charcoal, which results in the expelling of a pleasant odour. These are available in both loose and pre-mixed forms. There are different kinds of Bamboo in India. In Tamil Nadu, there are two types of bamboo such as Alangene Kimburu and Koovagam. The most appropriate name for bamboo sticks is Aggarbatti. “What type of bamboo is used for agarbatti” is studied in this article, along with the increased import duty on bamboo sticks.

Following Are The Major Reasons To Increase Import Duty On Bamboo In The Agarbatti Industry:- 

1. The main purpose of the increase in import duty is to encourage the use of domestic bamboo for AtmaNirbhar Bharat.
2. It will encourage the industry to use Indian bamboo.
3. The increase in duty will encourage domestic manufacturers to use bamboo sticks as raw materials instead of importing bamboo sticks from China and Myanmar. 
4. Consumers will not face any hike in the prices of agarbattis as the duty on natural raw materials has not been increased. 
5. The only gain for importers is that they can import more agarbattis now due to lesser customs duty levied on bamboo imports.
6. The cost of import has gone up, so the cost of production will also go up, making it more expensive for consumers.
7. This decision will open up new avenues of self-employment in the country.
8. At least one lakh new jobs will be achieved in the Agarbatti industry, a major activity in the village industry sector in India.
9. The Indian Government has increased the import duty on bamboo sticks from China and Vietnam. This tariff hike has been done to favour domestic manufacturers, who will be an opportunity for the new agarbatti stick manufacturing units to be set up in India.
10. The Ministry said that the Government had received complaints about the excessive import of bamboo sticks from China and Vietnam from time to time. The imports led to a situation where domestic manufacturers could not meet the growing demand for Agarbatti Sticks in the domestic market.
11. Will boost agarbatti stick manufacturers in India to manufacture and export agarbatti sticks to the International markets.

Import Duty On Bamboo For Agarbatti Industry:- 

India’s agarbatti (incense stick) industry is facing hard times as the government has imposed an import duty of 30% on bamboo sticks used for manufacturing incense sticks. The decision was taken to reduce imports, encourage indigenous bamboo sticks, and boost the environment-friendly manufacture of incense sticks. The Import Duty on bamboo is affected by government regulations. 

The Central Board of Excise and Customs has imposed a 5-per cent import duty on bamboo sticks for the agarbatti industry. The move will increase the raw material cost by Rs 10 to Rs 20 per bundle. The hike will impact the agarbatti industry, a substantial buyer of bamboo. Bamboo sticks often form a major part of the Agarbatti industry. Such an import duty on bamboo sticks for the agarbatti industry hike could be detrimental to those working there. The increased import duty on bamboo for the agarbatti industry has upset the entire industry. “what type of bamboo is used for agarbatti” is studied in this article, and the reasons for the increased import duty on the bamboo.

Conclusion:- 

The increased import duty on bamboo sticks will provide a big boost to employment in India. The demand for agarbatti is growing by the day, so the government’s decision will push agarbatti manufacturers and farmers across the country.

The market for agarbatti is growing at a very fast pace in India. It is estimated that the Indian agarbatti market will grow by more than 20%, and the total consumption of agarbatti in India will increase from around 18.84 million sticks to 27.72 million sticks. Such an import duty on bamboo sticks for the agarbatti industry hike will improve its demand.