Jewellers to suspend sales of gold bars, coins

Jewellers across the country will stop selling gold bars and coins for the next six months in support of the government's efforts to curb imports of the precious metal that has dented the country's trade balance.

"The jewellery community is one in supporting the country in times of crisis. We are happy to help with this voluntary action. This 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," Haresh Son, chairman of the All India Gems and Jewellery Trade Federation, said in a statement.

Sales of bars and coins account for about 35 per cent of total business of jewelers in the country and both small and large jewellers, manufacturers, major jewellery retail chains have committed to the GJF initiative.

GJF has more than 6,00,000 members, comprising manufacturers, wholesalers, retailers, distributors, laboratories, gemologists, designers and allied services and over 65 per cent of jewellers support the ban, the federation said.

Jewellers have agreed to stop sale of bullion and coins to consumers and corporate bodies after the federation conducted over a dozen meetings across the country with local jewellers associations and members over the last one week, Son said.

"We have requested the entire trade across the country to stop selling and taking orders for gold bullion and coins," he added.

India's current account deficit (CAD) is currently around 4.8 per cent of the country's gross domestic product (GDP) after hitting a high of 6.7 per cent in the October-December quarter.

High CAD is also one of the reasons behind the weakening of the rupee that has fallen to all-time lows of 61.21 against dollar.

CAD, which is the difference between the outflow and inflow of foreign currency, has widened during April-May due to surge in festival related import of gold, according to the Reserve Bank of India (RBI).