Some jewellers in Tamil Nadu, Kerala pull out of strike

Even as the jewellers' strike reached a critical stage with a section of traders in Tamil Nadu and Kerala deciding to open shops, Indian Bullion and Jewellers Association (IBJA) has hardened its stand opposing the excise duty, which was imposed in the Budget.

Around 10 per cent of the showrooms in Tamil Nadu, mainly in Chennai, have started operations. In Kerala, too, many jewellers have opened stores. According to industry estimates, the jewellers in Tamil Nadu have already lost business worth Rs 5,000 crore owing to the strike. "There are 35,000 jewellery showrooms across Tamil Nadu. The jewellers in the state are facing business loss of Rs 350 crore every day because of the strike," said Jayantilal Challani, president of Madras Jewellers and Diamond Merchants Association.

Even when the association had called for strike earlier, several showrooms in the shopping hub of T Nagar in Chennai were open. These included GRT, Kalyan Jewellers, Kerala Jewellers, Prince Jewellery, Nalli, etc, Meanwhile in Bengaluru, jewellers continue to down their shutters. "We have around 40,000 people protesting in Delhi tomorrow (Thursday) and we are hoping for a favourable feedback from the government," said Venkatesha Babu, president of the Jewellers Association of Bangalore. The jewellers will hold a rally at Ramlila Maidan in Delhi. The rally has the support of the Aam Aadmi Party.

On Thursday, the finance ministry has called a meeting to discuss the gold monetisation scheme. IBJA, which will participate in the meeting, has demanded that that the meeting's official agenda be discussion on excise duty. "Else, IBJA won't promote the gold monetisation scheme and will not participate in any future meetings," said an IBJA official.

IBJA has threatened that it will not support the government's gold bonds scheme if the excise duty is not withdrawn. It is also contemplating not to pay any taxes till the excise duty is not withdrawn.

According to All India Gems & Jewellery Trade Federation (GJF), another industry body, the stakeholders of the sector - goldsmiths, artisans, jewellers, etc - have lost business worth Rs 20,000 crore because of the strike.