Concerns Over OEM Cartridges Made in China
Prompted by the global pandemic, the souring relationship between border countries and a spirited call to grow manufacturing industries domestically, the Indian government is calling for a review of its processes to procure OEM toner and ink supplies.
Newsd reported two government departments have issued directives for all government entities to give preference to Make-in-India goods and services. This follows Prime Minister’s Narendra Modi’s call to make the country “Aatmanirbhar.”
The Department for Promotion of Industry and Internal Trade (DPIIT) and Department of Expenditure have restricted all ministries and departments from procuring goods from manufacturers whose products are manufactured in the countries which share a land border with India on the grounds of national security. This primarily targets China.
The article reported, “No doubt it is a much-awaited and most welcomed initiative of our Prime Minister to free the economy from the clutches of countries like China who have been gradually destroying our economy like a termite for years now.”
It has been noted, however, the Indian government’s own procurement platform, the Government-e-Marketplace (GeM) “continues to sell printer toners of Chinese origin.”
Printer consumables including toners and inks of all major brands like HP, Samsung, Canon, Lexmark, Brother, Xerox, Epson, Ninestar Pantum are mostly manufactured in China. Given these companies each have a large printer base in the government sector, they have taken advantage of the special category of ‘OEM Cartridges/Consumables’ on GeM. This allows each OEM and their selected authorised dealers and resellers to sell printer consumables.
The article asserts OEMs are manipulating the GeM platform to sell their “Made-in-China” toners to extract unrealistic and unjustified prices from the government. This allegedly impacts the foreign exchange between India and China with a great loss to the Indian Government Exchequer. The news channel opines it defeats the very purpose of creating the GeM.
The OEM market share in India is quite small compared with the aftermarket share. Globally, OEMs enjoy between 70 and 90 percent of the market, but in India, it is the reverse. Aftermarket toners and inks are available in a very competitive marketplace and significantly lower than the OEM prices for their branded products.
GeM authorities are well aware of this fact but have not taken any step to prevent the OEM companies either from selling Chinese products or taken steps to control the exorbitant prices they are charging.
Given the new policy from the Prime Minister, the news channel calls GeM to take concrete steps to ensure only one category of Make-in-India suppliers is created in line with the directions of the DPIIT and Dept of Expenditure.
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