Jewellers in Coimbatore opine that gold jewellery sales have been witnessing a 50 percent decline over the previous year due to factors such as steep price rise, rise in imports and rising prices of essential commodities.
Coimbatore: India is one of the world's leading producers and sellers of gold jewellery. It would not be an exaggeration to say that Coimbatore is an indispensable city in the gold jewellery trade in India.
Coimbatore, one of the top three cities in the gold jewellery trade, is currently witnessing an unprecedented decline in gold jewellery sales. This has caused concern among jewellers and sellers.
Muthu Venkatraman, President of the Jewellers Association shared with SimpliCity various reasons why the gold trade in Coimbatore has now turned upside down.
"The gold and diamond jewellery produced in Coimbatore, which has carved a niche for itself in the production of gold jewellery, has a reputation not only in the local but also in the outlying markets. Gold jewellery manufactured in Coimbatore is exported to Asian countries such as Malaysia, Singapore, Dubai, European countries such as the UK and countries like the US and Canada.
As far as gold jewellery sales are concerned, Coimbatore usually sells around 200 kg per day. They are sold directly as ornaments rather than as gold plates. At present, gold jewellery sales in Coimbatore are witnessing an unprecedented decline due to various reasons. The primary reason for this is the rise in the price of gold. The price hike has directly impacted the sale of gold jewellery. As a result, this year's sales are witnessing a 50 percent drop as compared to last year.
Other major factors contributing to the unprecedented decline in the gold jewellery business are the increase in imports from 10 to 15 percent. The rise in prices of essential commodities is due to lack of savings and lack of liquidity among the public. These have severely pushed the gold jewellery consumers back. If this trend continues, there is a risk of Coimbatore moving away from its unique position in the gold jewellery business.
On the one hand, there is a business impact and on the other hand it affects employment opportunities. Those who are directly and indirectly engaged in the production of gold jewellery are reeling under unemployment. Understandably, goldsmiths who are engaged in making gold jewellery only get work for 15 days in a month.
With a total of 626 jewellery shops and 45,000 jewellery workshops in Coimbatore, where more than one lakh families earn a living on the basis of cottage and small and micro enterprises, the rise in the price of gold jewellery and the fall in sales have put the workers dependent on the industry under severe pressure.
Therefore, reduce the import duty in order to save the livelihood of lakhs of families. Bring down the prices of essential commodities and take appropriate steps to increase the number of gold consumers," demanded Muthu Venkatraman, President of the Jewellers Association.