NEW DELHI: In a major blow for companies ranging from consumer goods and spirits to consumer durables and footwear, the government Canteen department store (CSD), which operates soup kitchens for the defense forces, is set to ban all ‘direct import’ items.
‘Directly imported’ items would include those shipped from other countries in finished form. In the spirits segment, for example, Scottish brands that are bottled in Scotland will be banned, but those that have imported ingredients, but bottled in India, will continue to occupy the shelves.
Of the 5,500 items sold by the CSD, about 420 are imported, according to the Manohar Parrikar Institute of Defense Studies and Analysis. Among all countries, China accounts for the largest share of imported items, such as toilet brushes, electric kettles, sandwich toasters, laptops, and women’s bags.
The move is part of an effort to support Prime Minister Narendra Modi’s Atmanirbhar Bharat Abhiyan that was launched to promote domestic manufacturing, industry experts said. TOI has reviewed a copy of the order that has instructed army canteens to stop procuring directly imported items. “We have received the order and we are resolving the procedures,” said a senior official. “It will take some time to implement.”
The hardest hit will be companies that sell premium products like imported spirits, high-end smartphones, and consumer durables. “Imported liquor has very high margins,” said a senior industry executive.
“Of the 10 bottles that are sold in army canteens, four are usually for people who do not work in the military, such as friends and family. Companies that have a high exposure of imported articles in army canteens will be the most affected. ” CSD, which is one of the largest retail chains, serves 12 million customers.
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