The Hindu Business Line : Gold sales fall by 30-40% in 7 months this fiscal

Higher turnover seen: Mr C. Vinod Hayagriv (right), Chairman, All-India Gem and Jewellery Trade Federation, and Mr Ashok Minawala, former Chairman, addressing a press conference in Kochi on Saturday.

Our Bureau

Kochi, Nov. 21 Gold sales in the country have registered a fall in terms of quantity by 30-40 per cent in the first seven months of the current fiscal due to economic recession as well as increase in gold prices, Mr C. Vinod Hayagriv, Chairman, All-India Gems and Jewellery Trade Federation, has said.

However, supported by the rise in gold prices, the sales value has gone up during the period, he said at a press conference here on Saturday.

Mr Hayagriv, who was here in connection with the second edition of the Kerala Gem and Jewellery Show, said the domestic gem and jewellery trade in the country registered a turnover of Rs 1,12,000 crore in 2008-09. The Federation is expecting an increase in the turnover in the current fiscal and its doubling by 2012.

He said the Federation has set a target for a massive sector growth by 2012 and called upon the Government to recognise the gold and jewellery trade as an industry to benefit it by being more organised in its structure.

The industry is facing numerous challenges such as the rising prices of raw material due to fragmented supply sources coupled with competition from Turkey and China in jewellery polishing and manufacturing. The Federation also urged the Government to allow every jeweller to import gold directly under OGL thereby reducing cost and increase profits for the industry.

There is also a need to implement uniform gold rates across the country to improve quality of jewellery, better profits for all, increasing consumer confidence and improve the image of the industry.

Mr P.V. Jose, Convenor of Kerala Gem and Jewellery Show 2009, said that the share of the State in gold and jewellery sales is 18 per cent both in terms of value and quantity. The State consumes 20 per cent of India’s gold as it is one of the largest jewellery hubs in the South with around 3,000 large and medium-sized manufacturers.

The global recession has not affected the industry in the State and about 650 kg is being traded in the market daily, he said. Earlier, the Kerala Industries Minister, Mr Elamaram Kareem, inaugurated the three-day Kerala Gem and Jewellery show, which is expected to provide a strong boost to the jewellery trade in the State and surrounding regions in the South.

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