Tiruchi’s jewellery sector looks to regain lustre with lower import duties on precious metals

Jewellery sector anticipates revival with reduced import duties on gold, silver, and platinum, leading to affordable prices.

The jewellery sector which has been hit by record high prices in recent years, is set to regain its shine once the reduced import duties on gold, silver and platinum announced in Tuesday’s Budget take effect, industry players have said.

The basic customs duty on gold and silver has been reduced to 6%, and 6.4% on platinum, from the earlier rate of 15%.

“Customers will benefit from the reduced rates. Already, we have noticed a drop of approximately ₹250 per gram, compared to the prices of a few days ago. Once the Budget’s policies are analysed and applied to the market, there is a chance of precious metal jewellery becoming affordable to a wider section of the public,” Sylvester, manager of a jewellery showroom in Tiruchi, told The Hindu.

Even though the Tamil month of Aadi is traditionally a low season for the jewellery trade, purchasers continue to buy irrespective of the prices based on their need, he added.

In-store jewellery small savings schemes would also boom once the duty reduction takes effect, said market sources.

“I A price drop of up to ₹450 per gram of gold could be expected. But it is doubtful if this decrease would be immediate, because there are many traders with stocks bought at the old duty rates,” said M. Chandrasekhar, senior president, Tiruchi Jewellers’ Association.

At least 500 jewellery stores are estimated to be running in Tiruchi at present. Mr. Chandrasekhar said that the downslide in the Cauvery delta’s agricultural sector had affected the purchasing power of rural customers.