CHENNAI: Though the central government has given the green signal to resume limited economic activities from April 20, the relaxation will hardly help bring back the sound of hammer in jewellery workshops.
Jewellers feel it will be difficult for them to reopen workshops, as showrooms are closed and there is no demand at all. Adding to this, a majority of the artisans have left for their native places, and the lack of public transport would make it difficult for the remaining to join back," said a member of the All India Gem & Jewellery Domestic Council (GJC).
According to GJC chairman Anantha Padmanaban, the industry is staring at a loss of around Rs 70,000 crore due to the pandemic. "The sector’s condition is actually a matter of concern for us. We missed major business that happens in the marriage season due to the lockdown. Stocks are lying unsold in closed showrooms. Akshay Tritiya is also a good business season that the jewellers lost due to the pandemic," he said.
According to jewelers, there is zero demand, and hence, it is not wise to make the workshops operational now. The reopening now will, in fact, raise the expenses, they say. "There is no immediate relief for the industry. Even if the shops are opened after the lockdown, buying gold jewellery won’t be a priority for people. It will be difficult to bring the customers back to showrooms," Padmanaban said, adding that retailers across the country sell 50-60 tonnes of gold every month, but due to coronavirus outbreak, almost 60 per cent of the business is lost.
"We hope to see some business during Diwali only. FY21 will definitely see over 50 per cent fall in overall business," said Padmanaban. GJC feels that Centre should urgently consider measures such as reducing customs duty to 4 per cent, besides allowing retailers more time to file tax returns.
Even the artisans are uncertain of their future. "We don’t have any work since March last week. I may have to look for some other job to sustain my family," said Ashok Parmanik, an artisan in Chennai.