Bullion dealers, jewellers plan to go on strike on Mar 10

Bullion dealers and retail jewellers across the country are planning to go on a one-day strike on March 10 demanding easing in gold import curbs.
To contain the widening trade deficit, government has hiked import duty on gold to 10 per cent to discourage imports of the precious metal, while made it mandatory to re-export 20 per cent of imported gold.
"We are planning to go on a strike on March 10 as current restrictions on gold imports have affected our business badly," India Bullion and Jewellers Association (IBJA) Vice President Prithviraj Kothari told PTI.
Over-restrictions on gold imports have created domestic shortage and there is also increased rate of unemployment in the industry, he said, adding that most jewellers are downsizing their business during this tough time.

"Since the current account deficit has narrowed down, there is an urgent need to relax some restrictions on gold imports to protect the interest of the labour-intensive jewellery industry," Kothari said.
Asked if government agencies are conducting raids to check smuggled gold, he said: "In the current scenario, gold smuggling has increased. There were reports of raids and seizure of some gold held by wholesalers."

In January, Finance Minister P Chidambaram had said the curbs on gold imports would be reviewed by March end.
He had also said there has been about 1-3 tonnes of gold smuggled into India -- the world's largest gold importer -- every month following the restrictions.

IBJA, formerly known as Bombay Bullion Association, has around 1,200 members, including bullion dealers and jewellers across the country.
According to the World Gold Council, India imported about 750 tonnes of gold in 2013, while up to another 200 tonnes were believed to have been smuggled into the country.