Steep rise in gold price hits sales in Kovai; 60% lose jobs
COIMBATORE: Continuing steep price rise in gold has taken a heavy toll on the jewellery industry in the city, said Coimbatore Gold Jewellery Manufacturers Welfare Association president B Muthu Venkatram. Gold price continued its march north of the graph by touching `29,528 a sovereign on Sunday.
Venkatram said that the spike sent sales on a downward spiral with estimates pegging a slump of 60 per cent in sales. The spike has had a cascading effect with employers laying off 60 per cent of the workforce. Talking to Express, Venkatram said consistent fall in the value of Rupee viz-a-viz Dollar continues have impacted sales.
“Add to it the import duty of 12.5 per cent and the three per cent GST, and the price only goes up.” he said. Venkatram opined that government must curb imports by relaxing tax.