Pink City’s gems and jewellery trade has been affected by the weakened rupee and strong dollar so much that a large number of jewellers have this time skipped the Hong Kong jewellery and gem fair. City jewellers buy colour stone, diamond among other things from this fair, which is processed and polished in Jaipur and sold further.
However, this time, many of the jewellers have chosen not to go to this fair which started from Wednesday itself and will end on September 16. “Many Indians from Jaipur, Delhi etc go to Hong Kong but a lot of them have not gone. Since the dollar has become strong, nobody is willing to buy the stuff,” said Kailash Mittal, President of Jaipur Sarafa Traders Committee.
Jaipur is the trading hub for gold and silver in north India. The jewellers are in a fix because of the devaluation of the rupee in the currency market. The effect of our currency’s fall in value is impacting the procurement of gold.
“Gold is largely imported and then moulded into jewellery before being retailed to clients and customers. Because of the steep devaluation in rupee, jewellers and Sarafa traders are holding back purchases as they are having to shell out extra that is eroding our margins badly. We are already down 25% in business because of this free fall in rupee,” said Kailash Mittal, President of Sarafa Traders Committee.
“The exports are also suffering despite the incentivised scenario for the business houses. The international buyers are putting their orders on hold. There are less export orders in jewellery trade as the buyer is also calculating the payment to be made since the dollar is getting stronger and rupee is getting weaker. The buyer is not willing to place orders at this price range,” Mittal said.
The devaluation of the rupee is definitely is having an effect on buying. The gems are already costlier by about 10%. I am here at the annual trade fair in Hong Kong. The participation from India has fallen to 50% compared to last year,” said Tarang Arora, city-based jeweller.
TRADING HUB
Jaipur is the trading hub for gold and silver in north India. The jewellers are in a fix because of the devaluation of the rupee in the currency market. The effect of our currency’s fall in value is impacting the procurement of gold.
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