BERHAMPUR: With the price of gold rising steeply, jewellers of Silk City are anticipating subdued business this festive season.
The Berhampur Jewellers Association (BJA) is apprehending a decline of 50 per cent in sale of gold during the peak season from Dussehra to Dhanteras. The price of 916 Hallmark gold has gone up to Rs 3,500 per gram. It was Rs 2,800 to Rs 3,000 per gram during Dhanteras last year.
Terming the situation as worst in 20 years, members of BJA said the price of the yellow metal has been going up for the last two and a half months. The Union Government has increased customs duty on gold from 10 to 12.5 per cent. Besides, the exchange rate of rupee too has nose-dived against the US dollar. This has brought down trade in gold by 50 per cent, said the secretary of BJA Epari Siba Prasad.
Berhampur, the business hub of south Odisha, records gold trade of Rs 300-400 crore every year. Business worth Rs 20-30 crore is done during the period from Dussehra to Dhanteras.
However, demand for the yellow metal has dwindled considerably in the last few years, said BJA president P Satyanarayan Senapati. Jewellery shops in the city are now preparing ornaments with minimum gold and offering no making charge to remain in business.