Jewellery industry concerned over sharp hike in import duty

Bhubaneswar: Members of Odisha’s jewellery industry on Wednesday expressed concern over the sharp hike in import duty on gold from 6% to 15%, warning that the move could severely impact the state’s gold market, dampen consumer demand and affect thousands of traders, artisans and workers dependent on the sector.

Jewellers said the hike has directly pushed up gold prices at a time when consumers are already grappling with record-high rates. They feared the increase would further discourage purchases and slow down business activity across the state.

“The hike in import duty on gold will be a deadly blow to the gold market in Odisha. The industry is already struggling with fluctuating prices and weak consumer sentiment. A further rise will only reduce footfall and delay purchases,” said Sourav Roy of the State Jewellery Traders’ Association.

He said footfall in jewellery showrooms has already dropped by nearly 50% to 60% because of soaring prices and Prime Minister Narendra Modi’s appeal on cutting down on unnecessary gold buying.

In Odisha, the jewellery market is largely driven by demand for 22-carat gold. On Wednesday, the price of 22K gold rose sharply to Rs 1,47,900 per 10 grams from Rs 1,41,150 a day earlier.

Jewellers said the ongoing wedding season in the state will continue for another two days before resuming again in Nov. They said the sustained rise in gold prices has already altered consumer buying patterns, with many customers opting for lightweight ornaments or exchanging old jewellery instead of making fresh purchases.

“The existing gold price has already changed buying patterns. Customers are buying lighter jewellery or exchanging old ornaments. With this sudden hike, demand may continue for the next two days because of weddings and then almost come to a halt,” said Binayak Acharya, a Cuttack-based jeweller. He added that the steep rise in duty and prices came as a complete surprise to the industry.

Consumers, too, expressed concern over the rising prices. “We had planned to buy jewellery for a wedding in the family later this year, but with prices rising so sharply, we are now reconsidering using the old jewellery,” said Bhubaneswar resident Sasmita Mishra.