India has the hair, China has the wigs: Inside a $940 million trade

India and China dominate a thriving $940 million trade in human hair and its derivatives. Chennai, India's leading exporter of human hair, is a hub of activity in this industry. Indian hair is highly prized for its color and quality, used to make blonde wigs for Scandinavians, red extensions for Russians, and black and brown wefts for African Americans.

The Indian hair industry is valued for its color and quality, while the Chinese wig industry is valued for its ability to transform and color hair. Raw hair is in short supply as it is smuggled from Myanmar to China for processing before making its way to markets worldwide. India exports $940 million worth of raw and semi-processed hair, but its processed hair industry is quite small, exporting only $1.35 million worth of wigs, extensions, and wefts.

Despite high demand for Indian hair, Indian exporters complain of a shortage of raw hair. They allege that the official numbers underrepresent the actual volume of raw hair leaving India and that it is being smuggled into China. The auction prices of Remy hair have soared, pushing them beyond the reach of Indian wig makers.

Some Chinese interests may be behind these unnaturally high bids, possibly made by dummy exporters. Chinese companies allegedly buy Indian hair, add value, and sell finished wigs, extensions, and wefts at premium prices in American and European markets. India misses a flourishing industry that can create employment for more than a million people.