Jewellers lost a high-sales opportunity on Friday on the Gudi Padwa/Ugadi festival, resulting in an estimated business loss of around Rs 2,000 crore.
Gudi Padwa or Ugadi has traditionally been an auspicious occasion for buying gold and its jewellery in western Indian states, especially Maharashtra, which marks the end of the rabi harvesting season.
But jewellers have been on an indefinite strike since Saturday in protest at the customs and excise duty rises proposed in this year’s Union budget. Overall business loss is estimated at Rs 10,000 crore over the week.
“Opportunities come and go. We are supporting the bigger cause for the betterment of lakhs of artisans and labourers directly or indirectly associated with this industry,” said Bachhraj Bamalwa, chairman, All India Gems & Jewellery Trade Federation (GJF), the trade body spearheading the strike. On this day, generally gold jewellery witnesses at least a 25 per cent rise in sales volume.
In the Budget, finance minister Pranab Mukherjee proposed doubling customs and excise duties on gold and its jewellery. Movement of jewellery from export-oriented units to the domestic tariff area was brought under the excise net and a one per cent tax deduction at source imposed on cash jewellery purchases over Rs 200,000.
“We are hopeful of a favourable decision from the government very soon, with some cuts on the proposed duty,” said Bamalwa.
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A delegation led by Ashok Minawala, past chairman of GJF, met the commissioner and ex-commissioner of excise here on Friday on the standoff. The officials assured the delegates they should have no apprehension of ‘inspector raj’ affecting the trade as a result of the new imposts. Time has been given to the industry to understand the applications and jewellers are free to register themselves even after 12-15 days.
“We were assured that no jewellery outlets would be visited by the excise department for any needless confrontation. Industry players are free to file their quarterly returns on a self-assessment basis. The excise department promises full support and cooperation in case any amendments need to be made to suit the business activity of individual businesses,” said Minawala.