 "An empty jewellery store in Mumbai (pic: Suryakant Niwate)")
The opening day on Tuesday of a three-day jewellers strike was only partly successful. A number of jewellers at the Zaveri Bazaar here had kept their shops open. However, more were expected to strike on Wednesday. “The decision was taken late Monday night and the message not fully passed on. A number of jewellers who kept their shops open on Tuesday have confirmed joining the strike on Wednesday,” said Mohit Kamboj, president of India Bullion and Jewellers Association (Ibja).
However, All India Gems & Jewellery Trade Federation (AIGJF) late in the evening, in a press statement, said the strike will be from March 2-4. “AIGJF, with co-ordination and recommendation from the All India Jewellery Associations announced that jewellers, including manufacturers, wholesalers and retailers, will go for a three-day closure to protest against the government's proposals of imposing one per cent excise duty in the jewellery sector,” the statement said.
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The strike was to protest at the Union Budget announcement of a one per cent excise duty levy on articles of gold and diamond studded jewellery. AIGJF says it is an umbrella body for around 300 associations across India, representing at least 200,000 jewellers. Ibja plans to take a delegation to the Union finance minister.
Bullion dealers and jewellery makers had sent several representations to the government for reduction in import duty from the existing 10 per cent to two per cent, saying the jewellery sector was under a lot of adverse pressure.
"On the contrary, excise of one per cent has been levied, which will prove a major setback for the officially organised sector of the bullion industry," said Prithviraj Kothari, head of RiddiSiddhi Bullions.
The Rs 250,000-crore domestic jewellery industry has an estimated daily turnover of Rs 7,000 crore. At present, it pays Rs 1.2 per cent as excise duty, in addition to 10 per cent as import duty on gold.
