How smugglers are driving India's billion-dollar hair loss

Time of India

13-05-2025

India, the world's largest source of human hair, finds itself at the wrong end of a billion-dollar industry. From temple tonsure rituals in Tirupati and other pilgrim centres to household comb waste in rural homes of Andhra Pradesh, Tamil Nadu, Bengal and Telangana, the country provides nearly 85% of the world's raw hair supply.
Yet, it contributes a negligible share to the final product market— wigs, wefts, and extensions — where the real profits are made.
Raw human hair is increasingly being smuggled out of India through illegal routes. Much of it is trafficked across borders to Myanmar, Bangladesh and Nepal, and then processed in Chinese-run factories in Southeast Asia and China. There, using low-cost labour, including child labour, the hair is turned into high-value wigs and hairpieces sold in Western markets, raking in billions in revenue.
The Smuggling Nexus: From Temples to Myanmar
The scale of the racket came into focus when the Directorate of Revenue Intelligence (DRI) intercepted a consignment of temple hair from Tirupati headed to Myanmar via Bihar and Nepal. ED officials had earlier identified a key player: Lucas Thangmangliana, based in Hyderabad, who was under investigation in a Rs 11,000-crore scam.
'Hyderabad is the epicentre of the smuggling of raw human hair.
It travels from Secunderabad station to Kolkata and then to Guwahati before being smuggled through border routes,' ED alleged in the complaint against human hair smugglers. The estimated value of smuggled human hair is around Rs 8,000 crore annually, says ED.
Investigation also revealed that human hair traders from Telangana and Andhra Pradesh were selling hair through shell entities in North-Eastern states and Kolkata, from where it was smuggled to Myanmar and China.
Exporters say govt-fixed price for raw hair is $65 per kilo, but smugglers offload it abroad for as high as $100. 'The rest is routed through hawala channels,' said an exporter. 'This is harming legal exporters.'
The Untapped Value Chain
'We are exporting the most valuable part of the product at throwaway prices,' said Benjamin Cherian, president of the Human Hair & Hair Products Manufacturers and Exporters Association of India.
'If processed in the country, the market size could cross $5 billion.'
He pointed out that
Remy hair
(100% human hair, processed in a way that maintains natural cuticle direction) — collected mainly from temple donors — was highly sought after abroad. 'Remy hair commands prices of up to $800 a kilo abroad, while non-Remy, which makes up 85% of exports, is still being sold at undervalued rates.'
'Wig-making is a labour-intensive industry.
It requires skilled hands. Each hair strand is manually knotted. If we can structure this sector, we can create millions of jobs,' said Ashok Kumar Goli, who runs hair-processing units in Rajasthan and Chennai.
Bengal's Rise, South India's Fall
Bengal's Chandipur, Midnapore and Bhagwanpur have overtaken Andhra Pradesh and Tamil Nadu as processing hubs. S K Mehbub Alam, an exporter from Chandipur, said: 'I collect and process 300 tonnes of human hair every year, mostly non-Remy, which I turn into double-drawn hair and export to China.
But our profits are negligible.
China is now buying raw Indian hair smuggled via Myanmar and sold cheap.' Sritanu Jana of Jana Ventures, based in Midnapore, manufactures wigs for export to Europe and the US. 'There is a reason China dominates,' he says. 'Their factories produce thousands of wigs daily. We can't match those costs.'
Export Policies Fuel Black Marketing
'Govt is permitting export of the highest quality raw materials at $65 a kilo, while local market prices are $90 to $100,' Cherian said.
In March 2022, the Directorate General of Foreign Trade (DGFT) temporarily banned exports of non-Remy hair. But within two months, licences were granted again. 'Most were given to exporters previously blacklisted for foreign exchange violations,' Cherian alleged.
The West Bengal Human Hair Association even wrote to Union minister of commerce and industries Piyush Goyal, saying, 'Over 1.5 million families involved in this sector have seen their income halve from Rs 12,000 to Rs 6,000 per month.'
Towards A Sustainable Future
'We need a complete ban on raw hair exports under Indian Trade Classification based on harmonised systems (ITC-HS) Code 0501,' the association urged.
Cherian added, 'We request govt to fix the export price of raw hair at $100 a kilo. Temples should sell only to manufacturing exporters, not to any bidder without credentials.'
Industry players called for an SEZ exclusively for human hair in states like Odisha, Bengal or Andhra Pradesh. They also want a research chair at IIT Chennai or Indian Institute of Chemical Technology in Hyderabad to develop better bleaching, processing and wig-making technologies.
'We are losing not just money but also jobs, innovation, and dignity,' Cherian said. 'The hair is Indian. The labour can be Indian. The wealth should also stay in India.'