The All India Gems and Jewellery Trade Federation (GJF), at a Press meet here on Wednesday, demanded relaxed norms for import of gold for the gems and jewellery industry while approving the Government's steps for reducing the import of gold for investment and trading purpose.
The GJF is the nodal and the largest single trade body in India representing over 6,00,000 players comprising of manufacturers, wholesalers, retailers, distributors, laboratories, designers and allied services to the domestic gems and jewellery industry,
Regional Chairman (East) and Director of GJF Mitesh Khimji, in the presence of GJF office-bearers Epari Sridhar and Venkateswar Silla, termed the move to impose the higher import duty as a retrograde step . He added that the move by the Government to arrest the growing Current Account Deficit (CAD) has encouraged smuggling and hit the industry hard by making the raw material difficult to obtain.
The GJF has suggested a gold bond scheme where certain licensed jewellers be allowed to attract gold from consumers and deposit the same with scheduled banks instead of the proposed Bullion Corporation doing it. It has supported the step of the Government barring the import of gold by individuals and selling of gold by banks.
It has also suggested that gold-traded funds be allowed to loan their idle gold stocks to channelising agencies / nominated banks which can in turn be circulated in the manufacturing process of the Gems & Jewellery Industry. The suggestions include steps by the RBI to encourage Gold Deposit Schemes from consumers to organised jewellers.
The speakers pointed out that the gems and Jewellery industry is labour-intensive with over 1 crore strong labour force and the industry size is estimated to be in the region of Rs 2,75,000 crore. Uncertainty of supply of gold in the supply chain would render many artisans jobless, they asserted.
The GJF presented a list of demands which included continuation of 25 per cent-margin requirement for gold loans, continuation of gold loans on SBlC schemes, continuation of 180 day payment cycles for gold loans, abolition of raw bullion bar sales and free trade without controls.