An industry that is largely trade-oriented and attracts over over 5,000 exhibitors and 1,00,000 buyers at various trade fairs has witnessed a continuous decline in exports in all of the 11 months of FY20, with February 2020 being a major disappointment, CARE Ratings said in a report. The upcoming festivities of ‘Akshaya Tritiya' may not offer much cheerful signs, as jewellery demand is expected to remain muted in the short term, the rating agency said.
The company will partner with local and government bodies to ensure that the funds are allocated in a meaningful and efficient manner.
It urges RBI to provide interest subvention in this situation across all sectors for traders and manufacturers up to 5% and permit extension of packing credits and export bills for a period of 90 to 180 days depending on business cycle of the industry without impacting the status of the account.
The Fund allocated by GJEPC will also be utilized to support the Government in undertaking several initiatives to fight the current crisis in India.
Purchases are estimated to plummet 30% in 2020 from the 690 tons last year.
India is the world’s second largest jewellery consumer after Greater China. Prices of 99.5% purity gold have declined from over Rs 44000 per 10 gm (ex GST) on March 6 to around Rs 40,556 on March 23 as per trade body IBJA . Early March demand slipped by 30-40% because of the rate hike .
"Following the COVID-19 outbreak, we face unprecedented levels of anxiety globally, which has affected all asset classes including gold. It appears that volatility in gold price is driven by massive liquidations across all assets and likely magnified by leveraged positions and rule-based trading," WGC Managing Director (India) Somasundaram P R told.
While ecommerce sales of essentials like foodstuff and personal care items surged amid fears over the spread of the coronavirus, those of fashion and lifestyle goods are taking a beating as fashion brands from jeans to shoes are reporting a 10-20% drop in online sales in the last two weeks.
Gold sales during Gudi Padwa and Ugadi to remain muted this year as people are scared to get out of home in fear of coronavirus, say jewellers.
The Bourse has also instructed the Mumbai Diamond Association to reduce the number of people on its trading floor to 200 from 600 , Anoop Mehta , BDB’s president told ET. The food courts in the sprawling complex housing 4000 offices have already been shut .
Following the coronavirus outbreak, the gems and jewellery sector in the country has come to a standstill with retailers managing to do only 20-25 per cent business due to fewer footfalls amid fear of the virus' spread, according to an industry body.
AB de Villiers said, “I am elated to join the tribe alongside my friend and RCB team-mate Virat. During IPL, we have been sharing the dressing room for over a decade and it would be fun to discuss style and fashion besides sports.
In the first nine months of this fiscal, India’s total diamond exports by value were down ~18%, on-year. About 40% of these exports are to Hong Kong, which has seen dysfunctional local markets over the past year or so. And since January 15 this year, diamond exports have practically halted.
The new showrooms will go on stream in the next three months..The expansion is part of the jewellery retail chain’s plan to become the world’s largest gold retail chain. Currently the company own and operate more than 260 showrooms spread across 10 countries. The aim is to triple the total showroom count to 750 in the next five years.
Speaking at an event, organised by ICC here, he said the exposure of SBI to the jewellery industry is around Rs 20,000 crore, adding that the lending growth to the sector has been muted at present.
Shrishti is the promoter of Aranya Natural, the natural dyed fabrics produced by specially abled associates in Munnar in Kerala. Around 60% of Aranya Natural products are now sold abroad.
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