Jewellers divided over one day strike on Wednesday

Bullion body will not support strike to protest against mandatory PAN requirement for deals exceeding Rs 2 lakh

Jewellers and bullion dealers are divided over the one-day strike being observed on Wednesday across the country. While the apex industry body representing jewellery manufacturers and retailers has called the strike, bullion dealers' body, the India Bullion and Jewellers Association (IBJA), has decided not to support it.

"This strike has been called by some other association which is against the government's policy of mandatory requirement of permanent account number (PAN) for transactions exceeding Rs two lakh. After many years, the Indian government is being positive about the gold industry and has abolished many policies like 80:20 and others such policies that were implemented by the United Progressive Alliance (UPA) government," said Mohit Kamboj, President, IBJA.

The All India Gems and Jewellery Trade Federation (GJF) has claimed that over 300 associations of the jewellery trade, with over 100,000 shops across the country, will observe a day-long token strike on February 10, 2016, to protest against the government's imposition of PAN card proof on purchase of Rs two lakh and above.

"This is a crisis situation for the entire industry to survive because the jewellers are losing customers mainly in small towns and rural areas where a majority of population does not have PAN cards in their names. Our members and many of the jewellery Associations are on agitation path since they suffered losses of over 30 per cent in business transactions in last one month. Prolong of such situation will lead to job losses for workers, artisans and employees. We are in touch with the Finance Ministry urging them to make the PAN Card mandatory on jewellery purchase of over Rs 10 lakh instead of the present Rs two lakh effective January 1," said G V Sreedhar, Chairman, GJF.

Sreedhar claimed that this restriction on jewellery buyers has already dent business volumes and the slowdown has affected jobs for millions of workers, artisans and small traders in the jewellery sector across pan India as their business turnover dropped over 30 per cent since the imposition of restriction about a month ago.

Meanwhile, Kamboj said, "A strike is not the only way to protest. The Indian government has set limitations on all the industries to curb down the black money and IBJA is in complete support of the government for curbing this black money. In order to increase the PAN card limit for the gems and jewellery sector, IBJA has already submitted a presentation to the ministry, which is prepared by a professional agency."