Centres like Coimbatore in Tamil Nadu and Thrissur and Kochi in Kerala are facing huge shortage of gold. These centres constitute around 15-20 per cent of India’s overall annual demand of the yellow metal.
“Nominating agencies that are responsible for supplying gold to jewellers have failed to meet up the industry’s requirement in the south Indian states with supply becoming a major constraint in these smaller regions,” said Vipul Shah, chairman of the Gems and Jewellery Export Promotion Council, on the sidelines of a seminar in Mumbai on Tuesday.
The government has nominated banks and large private sector companies to import gold directly.
Besides retailing gold products, including coins and bars, private companies can supply gold to other companies depending upon their capabilities.
These companies, however, remain restricted to supply gold to small players with regional presence.
Confirming the shortage, Mehul Choksi, chairman of Gitanjali Gems, said: “While export-oriented units do not face any problem because of their credible business model and sound creditworthiness, small size players do face problems of gold availability in the south.”
Meanwhile, GJEPC has suggested the government allow tax-free import of gold to encourage export of jewellery which consists of around 14 per cent of India’s
PIX: Shabana Azmi, Rakhi Sawant celebrate Holi
Current account deficit likely to be at 4.8%: HSBC
Congress downplays Narendra Modi's elevation in BJP
PICS: Jewellers woo consumers and banks
'Diamond industry no longer dominated by West'