All Rights Reserved Finance News 2020.
Jewellers unlikely to achieve 100% gold hallmarking by June 2021: IBJA
Jewellers throughout the nation are unlikely to achieve 100% gold hallmarking by June 2021, the brand new deadline set by the federal government, in accordance to the India Bullion and Jewellers Affiliation (IBJA).
At current, solely 30,000 jewellers out of the practically 300,000 jewellers within the nation are BIS (Bureau of Indian Requirements) licensed and are promoting hallmark gold.
The federal government had prolonged the deadline for necessary hallmarking to June 1, 2020, from January 15, 2021, in view of the Covid-19 pandemic.
“We have now requested the federal government for extension of the deadline until January 2022 as now we have misplaced three months in lockdown and now it might require not less than 9 months for the market to revive,” stated IBJA nationwide secretary Surendra Mehta.
He additionally stated that after the introduction of the Shopper Safety Act, the federal government wants to relook on the total Hallmarking Act.
“We really feel the Shopper Safety Act is far wider in scope and covers all elements of gross sales and companies whereas the Hallmarking Act caters to a restricted space. Additional, there are totally different penal provisions within the Shopper Safety Act and the Hallmarking Act. Such totally different penal provisions in two totally different Acts might lead to delays in customers getting justice,” stated Mehta.
Jewellers stated there are hardly any gross sales of gold jewelry nowadays owing to the surge in gold costs to about Rs 50,000 per 10 grams and the financial uncertainty prevailing within the market. Except jewellers are ready to promote their merchandise, they can not substitute their inventory with hallmark gold, they stated.
Anantha Padmnabhan, chairman of the All India Gem & Jewelry Home Council, stated that by September 2021, jewellers will probably be ready to substitute 70% of their shares with hallmarked gold. “We’ll want one other three to 4 months to fully substitute the inventory with hallmarked gold. So the deadline needs to be prolonged to January 1, 2022. “Small jewellers will undergo if the deadline is June 1, 2021,” he stated.
Nevertheless, Uday Shinde, president of Indian Affiliation of Hallmarking Centres, stated: “We have been anticipating that not less than 100,000 jewellers will go for necessary hallmarking by October this yr. However the pandemic has delayed the method. Nevertheless, I really feel that the method shouldn’t be delayed past June 1, 2021. If the date has to be deferred additional, then jewellers ought to disclose to the federal government their inventory, each hallmarked and non-hallmarked.”