We noted that Mr Rajinder Puri’s op-ed talked about Chinese economy in terms of US Dollars (like bad loans to PSUs amounting to nearly 700 billion US Dollars). When his op-ed inspired us to write something about China, we also need to put in dollar terms for whatever monetary matters that we might encounter in doing the write up. So, when we say that Chinese lighters are selling for Rs 2.50 a piece in Imphal, this price works out to around 1/20th of a dollar. In case of the Rs5.00 a piece toothbrush, it is 1/10th of a dollar.
Seeing in dollar terms, the Chinese are nothing short of conjuring up a miracle.
‘Miracle’ may be an overstatement in case of what they are doing in Paona Bazar area in Imphal but they are certainly ravaging that area with their rock bottom prices. Not so long ago, Paona Bazar Road was lined up with mixes of shops dealing in varieties of trades. Book stores, newspaper stands, medical stores, eateries, hardware and electrical parts stores. All the usual mix. What was the original Moreh market ( now called the Paona International Market) was nothing more than a row of 40-50 rag tag stores housed in skimpy wooden structures. I admit all that was changed, not because of the Chinese, but by the hosting of the National Games by Manipur. Then there seemed to be a consensus here in Imphal that the Moreh market should have a more presentable face to those people expected from other States for the Games. So, the present RCC structure was built.
So far, the only change was that the Moreh Market now had a RCC structure housing the stores.
But something dramatic started happening. I can hazard to pin down the starting point to a period somewhere two years back from now. The book stores, the pan shops, the tea stalls, hardware stores and all others started by keeping some super cheap Chinese goods at their shelf. After some months, those cheapo assorted goods neatly occupied half the shelf spaces. Then in no time, there was nothing left of the book stores, the pan shop, the tea stalls or the hardware stores. You name it –you would find it totally occupied by the Chinese goods.
Now, from the entrance of the Paona Bazar Road up to Usha cinema, the Chinese occupation was almost total ( with only one or two photo shops and one or two assorted stores taking the proverbial last stand).
The worst affected are the book stores and magazine stalls. They are totally routed. You have to go at least up to Friends Talkies to buy a book, a magazine or a newspaper. I hate it. I hate the cheap Chinese goods for banishing all the book stores and newspaper stalls from Paona Bazar area. ( The only exception here being the Sahitya Parishad’s office cum book sote and the one belonging to Mr Yumnam Rupachandra. As he is the associate editor of ISTV and a fairly known public figure, I think I can name him. His sister runs the bookstore on their family shop space—so, no monthly rent—and it is mainly known for its Card business over and above for storing NBT books and some DIY kinds. I should also note that there is still a small magazine stall sitting side by side with Rupachandra’s but I think its days are already numbered. You have to note again that Sahitya Parishad’s bookstore is also using its own shop space and they are running their affairs with a yearly grant from the Government of Manipur).
Thus, unwittingly, Imphal has already become the frontline battlefield for the looming competition between the two giants. The most graphic illustration of the battle line is the visible transformation of the Marwari-Gujarati-Punjabi monopoly traders into just another average trader. Their competitive edge lies in the versatile network of their kith and kin which serve as the distribution system for the goods, produced again by their kith and kin, in the factories in Maharashtra-Gujarat, Rajasthan and Punjab. End to end, they are monopolistic.
But Chinese goods do not ride such a network—their USP is the uber cheap price. With exception of construction materials, you can have a Chinese substitute for any goods available here. Thus, this cheap Chinese goods , due to the massive upheaval of 100 million of its peasants, effectively blunted the traditional Marwari-Gujarati-Punjabi network right here in the middle of Imphal. BTW, you have to note those spaces for the big business-politicians nexus from which the Marwari-Gujarati-Punjabi traders normally mint money is totally usurped by the rebel here.
Do you notice a note a celebration in my reporting of the triumphant marching of the Chinese goods in Paona Bazar area?
No way.
Actually, I feel frightened by it.
That said, I’ve to inform you that I’m more interested in the corollary of this great drama now enacted in Imphal. The sheer power of these cheap goods from China propels a class of educated young men here to an altogether new plane from where they are accustomed to seeing that the Marwari-Gujarati-Punjabi traders can be beaten in their own game—trading. They are doing that right now—they are beating them. Some of them are flying in Kathmandu-singapore-HK-Bangkok circuit establishing business networks that usually extends up to Tamu and then to Moreh.
To my mind, they are busy affecting a shift in the paradigm of this tiny society although they are not aware of it themselves.
Sunday, July 09, 2006
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