Lockdown impositions in few parts of the country has proven out to be a major setback for Gold jewellery traders. At the time when gold market is expected to sell highest amount of gold, the price has dropped. During the festive week, of Eid and Akshaya Tritiya , gold business has recorded a downfall.
On Thursday, CAIT’s National President BC Bhartia and Secretary General Praveen Khandelwal stated, “Coincidentally, the festival of Eid will also be celebrated tomorrow and the jewellery trade across the country will suffer the additional loss of trade of gold jewellery on Eid. It will be the second consecutive year for the jewellery traders to remain under lockdown during such festivals…This year also due to the lockdown, the jewellery shops are closed in the majority of states,”
Gold rates fall during Akshay Tritiya and Eid-ul-fitr
Pankaj Arora, National Convenor, All India Jewellers and Goldsmith Federation stated about Gold fluctuations. He informed that the year pre pandemic managed to retail more than Rs 10,000 crore on Akshay Tritiya. However, last year gold sale restricted to only 5 percent of it. He further said, “Now in the second year of lockdown on Akshaya Tritiya, the gold and jewellery trade has suffered a big setback,”
Meanwhile, the Nagpur Bench of Bombay High Court passed an interim bill. It restricts the Bureau of Indian Standards to take any disciplinary action on the jewelers or impose penalties until May 14, 2021. Also, BIS cannot restrict the traders who don’t comply with the Hallmark regulation by June 1, 2021. This comes as a result of insufficiency of hallmark and assaying centers.
However, CAIT stated of the losses business traders suffered during the month of April. The loss counted was around Rs 6.25 crore, which increased as a result of multiple lockdown impositions in the country.
The retail and wholesale business also dropped in their profit rates. The loss stood at Rs.4.25 crore and 2 lakh, respectively.
Financial Express reported that the April lockdown might lead to loss of around 40 per cent of monthly earnings for micro retailers. The Federation of Retailer’s Association in India gave the statement. Moreover, as domestic gold rates have declined the price of yellow metal in the global market also suffered a similar loss.