Indian Jewelers Meet to Discuss Mandatory Hallmarking
September 03, 07
The All India Gem & Jewellery Trade Federation (GJF) met on Monday in Mumbai to discuss the implications of transforming the Bureau of Indian Standards (Hallmarking of Precious Metals) Regulations, 2006 into an Act. The new Act will make hallmarking mandatory from January 1, 2008, and in the first phase, it will be implemented in the four metros areas of
Over 300 jewelers attended the meeting, which was marked by lively interaction onstage between GJF leaders and Bureau of Indian Standards (BIS) representatives and vocal audience participation from the floor.
While the GJF welcomes jewelry hallmarking as being “in the interest of the jewelry industry and consumers at large”, it also says that it has been “regularly coordinating with the government and its regulatory bodies to make sure that it is implemented smoothly without creating panic and chaos in the trade.”
Several related issues have been raised by the GJF. Primary among these is the lack of adequate infrastructure. Statistics provided by the director general of the BIS to the GJF showed that there are seven hallmarking centers that cater to 627 hallmarked jewelers in Mumbai presently.
The BIS expects the number of hallmarked jewelers to increase to about 6,000 after hallmarking becomes mandatory. The GJF says that, with just four months to go, it doesn’t seem likely that the infrastructure could be put in place in time.
Estimates by the Federation put the number of total manufacturers in the country at about 300,000, with dealers and retailers accounting for another 300,000. The organization believes that the total number of centers needed for an industry of this size would be about 2500, against which barely 46 exist today, all of which are located in urban centers.
The GJF also points out to the complexity of the Indian jewelry product, which is mostly handmade and which includes many different elements. These separate elements like chains and beads are of different karat values and are often sourced from different suppliers. A single item of jewelry therefore may have different parts made of different karat values.
These and a host of other issues were raised by the GJF, in the hopes that the authorities would take the initiative on board, especially as the industry had not been consulted before preparing the draft.