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The government's curb on gold import is expected to hit hard the gems and jewellery artisans in West Bengal as a large proportion of them are from the state, a trade body said today.
"The curb was hitting the industry hard, especially in West Bengal," Bachhraj Bamalwa, President of All India Gems and Jewllery Trade Federation, said here.
Over 1 crore people are involved in the trade and the majority of the handmade jewellery is produced in the state, according to the trade body.
The curb in gold import was pushing the price further and also encouraging smuggling, black marketing, hoarding and panic-buying of the yellow metal in India, the federation claimed.
The Central bank has asked banks, nominated agencies and star trading houses not to import gold on a consignment basis for domestic sales and insisted on 100 per cent cash margin for letters of credit.
Already the import duty on gold has been increased from 1 per cent to 8 per cent in the last 18 months.
Among several recommendations the federation had sent to the government, included encouragement for unlocking domestic gold by introducing some kind of disclosure scheme.
The federation claimed that an estimated 2,50,00 tonnes of gold is locked in Indian households.
