The bullion market remained closed for the 11th day today following the strike by traders and jewellers against Budget proposals to bring them under the excise duty ambit.
Market sources claimed that the industry has lost nearly Rs 12,000 crore in the last 10-day even as demand is picking up for the marriage season.
Amongst major cities, bullion traders in Kanpur in Uttar Pradesh were closed and traders in other business also promised to extend the stir.
The Mumbai Jewellers Association has decided to extend their protest till this Saturday and will decide the future course of action depending on the response they get from the finance ministry.
"We are extending the strike till March 31, as there is no response from the government. We are supported by wholesalers, retailers and manufactures in the state," Mumbai Jewellers Association vice-president Kumar Jain told PTI here.
All-India Gems and Jewellery Trade Federation chairman Bachhraj Bamalwa said there were reports from some parts of the country that some jewellers and traders have even decided to go on an indefinite stir.
The Budget has proposed an excise duty of 1% on unbranded precious jewellery and doubled the customs duty on standard gold bars, gold coins and platinum to 4%.
Finance Minister Pranab Mukherjee last week justified the hike in customs duty on gold on the floor of Rajya Sabha.
"The import of gold of such magnitude strains balance of payments and affects exchange rate of rupee through impacting supply-demand balance of foreign exchange," Finance Minister Pranab Mukherjee had said.
"We are supporting the strike and are also in constant negotiations with the finance ministry urging the rollback of its duty proposals which will harm the sector," Bamalwa said.
He said GJF has submitted a detailed representation to the finance ministry that explains the adverse impact on the trade and the plight of small jewellers involved in it.
"We have been assured by the finance secretary that they will go through the representation and after assessing it they will take a call. We are hoping for a positive response," Bamalwa said.
When contacted, the Bombay Bullion Association President Prithiviraj Kothari said the strike was on and will take a call depending on the response from the government.
