Gold jewellery sales up 40% this month

Sales increased on the backdrop of falling gold prices

So far this month, sales of gold jewellery have risen 40 per cent year-on-year, owing to the fall in gold prices, the All India Gems & Jewellery Trade Federation (AIGJTF) has said. Compared to May, the sales have increased 20-25 per cent. However, AIGJTF, said smuggling of gold continues to be a major challenge.

Speaking to reporters, Manish Jain, vice-chairman of AIGJTF, here for the launch of the ‘Labham’ programme for jewellers in Tamil Nadu, said sales had risen since premium had fallen from Rs 1,500/10g to about Rs 500, following a few recent initiatives by the central bank. On gold smuggling into the country, Jain said, “The quantum of gold smuggled into the country in the past 12 months was equivalent to 10 years of the smuggled amount.” He added besides gold bars, of late, there was an increase in illegal import of jewellery into the country.

N Anantha Padmanaban, regional chairman of AIGJTF and managing director of NAC Jewellery, said the price of 22-carat gold had fallen from Rs 29,000/10g a year ago and Rs 28,500 a month ago to Rs 25,330/10g. “There is no gold available for jewellers; whatever is being used is recycled and left with bankers, which will not help the industry to address the demand,” he said.

Ahead of the Union Budget, members of AIGJTF have met Finance Minister Arun Jaitley and urged the government to reduce the duty on gold to two per cent from the current 10 per cent. They also sought an increase on the duty for jewellery.

The federation also said it was opposed to the 80:20 scheme introduced in August, 2013. According to the scheme, nominated agencies can import gold on the condition that 20 per cent of the imported amount will be exported. The permission to import the next lot will be given on fulfilment of the export obligation.