Jewellery manufacturers and retailers have decided to voluntarily ban sales of bullion (coins and bars) for six months or until the current deficit (CAD) problem gets reduced, a statement from the premier industry body the All India Gems and Jewellery Trade Federation (GJF) said.
Looking at the burgeoning CAD problems faced by the government, the GJF announced over a week ago a voluntary support to the government by urging its 0.6 million members to halt selling of bullion to consumers.
"The jewellery community is one in supporting the country in times of crisis. The ban in bullion sales to consumers is likely to continue for six months or till the CAD crisis is reduced. However the government must make fundamental changes to increase manufacturing and that will lead to value added exports," said Haresh Soni, chairman, GJF.
Jewellery sales and value added employment generating gems and jewellery activity, however, will be unaffected. The GJF has been in constant touch with the Centre to ensure that bonafide economic activity of the sector is undisturbed.
GJF has also represented to the Centre and the FM to continue the other forms of banking and funding for the industry that is currently facing many restrictions from the banks. Banks are taking damaging steps not mandated by the Centre and affecting the normal functioning of the trade.
The Federation is working closely also on the Swarna Bachhao Abhiyaan programme to unlock tonnes of idle gold in the country.
These actions will undoubtedly help the industry recover gold from domestic sources.