Jewellers expect 25-30% fall in business this festive season

Last Updated: Sun, Aug 18, 2013 12:38 hrs

Zooming gold price is expected to result in 25-30 per cent decline in jewellery business during this festive and marriage season, say industry players.

Gold surged to 2-year high of Rs 31,000 per 10 gram in Delhi on Friday, fuelled by supply restrictions after the government increased import duty to 10 per cent and firm global cues.

"Had the prices been below the level of sub Rs 30,000, it would have resulted in a very good business;...this can bring down the business to an extent of about 25 to 30 per cent," Apranje Jewellers Director Priyesh Savani told PTI on the sidelines of 'Asia Jewels Fair Expo-2013' organised here.

Stating that the macro economic situation and decisions on gold imports have hit the jewellery industry very badly, he said, "availability of gold is an issue, pricing of gold is even bigger issue, and the way gold price is rising- it is all artificial pricing;...duty and premium is hitting the market.

"You can't compete now as smuggling (will) go up, it has already started and will go up; the way government is treating this industry is really bad, it's killing the domestic market."

Savani said the government opinion that jewellery is taking away all the forex has taken some steps "has pushed us in to non-preferred sector, and is going to hit the industry hard".

Commenting on gold as an investment option, he said "for unaccounted money it is still the best and will always be the best option; investment perspective to the gold is killing the industry."

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