Mandatory Gold Hallmarking Rule Hurts Indian Jewellers
According to Dinesh Jain, Director, GJC, the country sells approximately 12 crore pieces of gold jewellery every year.
SEATTLE (Scrap Monster): The mandatory hallmarking requirement, which came into effect recently, might help customers to buy gold jewellery after assuring the purity of the metal. However, the mandatory requirement is said to be hurting jewellers in the country, noted the All India Gem and Jewellery Domestic Council (GJC).
According to Dinesh Jain, Director, GJC, the country sells approximately 12 crore pieces of gold jewellery every year. As per estimates, around 5 crore pieces of the existing stock need to be hallmarked. Calculating at the current rate of hallmarking of 1 lakh pieces per day, it will take nearly 18 months to hallmark the current stock. Even if laboratories operate at maximum capacity of 2 lakh pieces per day, it will take around 9 months for the hallmarking process to get completed. The hallmarking of fresh stock is in addition to this, said Jain.
ALSO READ: Gold Hallmarking to Ensure Further Consolidation in Industry
The manual feeding of weight of the piece of jewellery at hallmarking centres leads to difference in weight. The jeweller is forced to bear the loss due to weight difference as the weight details could not be edited, they being sold according to the certified weight. Furthermore, the disparities have led to longer-than anticipated delays. The process of handing over the jewellery to laboratory has also added to the insurance costs, GJC noted.