The restrictions on gold imports has hit jewellery exports and is seen to be putting
a crushing burden on consumers who cannot do without gold for traditional customary reasons.
According to sources, the commerce ministry has already approached the finance ministry for
relaxing some of the norms for gold imports as far as exporters are concerned.
The commerce ministry has stated that the present requirement of providing proof of export before allowing import of the next consignment of gold should be done away with for exporters of gems and jewellery.
The commerce ministry's letter to the finance ministry states that that "the cycle of manufacturing will get disrupted if we insist on proof of export before second round of imports".
Kumar Jain, vice-president, Mumbai Jewellers Association, told MAIL TODAY that the restrictions on gold imports have had a negative impact on the industry. Gold prices have suddenly jumped from Rs 26,120 per 10 grams to Rs 31,500, and both consumers and jewellers will be adversely affected, Jain added.
Jewellers are also of the view that with the hike in customs duty on gold to 10 per cent, the tariff has been brought on par with finished jewellery. Hence, it makes sense for jewellery retailers to import finished ornaments instead of gold and incur the additional production cost, which will make domestic origin jewellery costlier.
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