Gold traders demand proper monitoring policy
KATHMANDU, MAR 08 -
The Gems and Jewellery Show 2014 at the Hotel Yak & Yeti, organised by the Federation of Nepalese Chambers of Commerce and Industry ( FNCCI ), has been pulling hordes of visitors, both local and foreign. The expo showcases jewellery in classic and ethnic designs besides the latest styles.
The three-day exhibition which started on Thursday is part of the Nepal International Trade Fair which is going on at Bhrikuti Mandap, Kathmandu. The fair hosts 24 exhibitors of gems and jewellery from the Kathmandu valley.
Besides the exhibition, an interaction on the prospects of the jewellery market was held on Friday where FNCCI President Suraj Vaidya urged the government to create a proper mechanism to monitor the gold market. While the government has filed cases against five traders for selling inferior quality gold, the traders have been demanding a proper standard for monitoring.
“Due to lack of a proper monitoring policy and the import quota system, Nepal’s gold traders are facing various problems while doing business,” Vaidya said. “As jewellery is connected with Nepal’s cultural heritage, the government has to promote this industry by making a good policy.”
Traders have demanded that the government should allow for a fluctuation of 3-4 percent in quality when determining the standard of gold. Vaidya also protested the government’s quota system under which 20 kg of gold can be imported per day. Traders have argued that the quota is insufficient and that it has given rise to smuggling. Mani Ratna Shakya, president of the Federation of Nepal Gold and Silver Dealers Association (Fenegosida) said that the country could export gold and silver jewellery designed by Nepali artisans if the government becomes flexible on gold imports.
“The classic gold and silver crafts have a huge export potential in the international market,” he said. “Through this, we can increase revenue as well as generate employment.
According to Fenegosida, more than 500,000 people are involved in the jewellery business. It said that they paid Rs 6 billion in taxes to the government in the last fiscal year 2012-13.
Traders said that Nepal still lacks skilled jewellery makers which has resulted in a huge amount of money going outside the country. They added that if skilled manpower could be produced, many people would be employed in the jewellery business. Currently, there are 15,000 gold traders and 60,000 goldsmiths. There has been an investment of Rs 40-50 billion in the gold and silver market, traders said at the interaction programme.
Gold traders demanded that they should also be allowed to import gold. Only commercial banks have been permitted to import gold since 2010 after heavy gold imports resulted in a balance of payments deficit in the country. As the country suffered a huge trade deficit of as high as Rs 480 billion in the last fiscal year, the government has adopted a policy of discouraging the import of luxury items.
Meanwhile, Manish Lal Pradhan, president of the Gems and Jewellery Association of Nepal, said that jewellery traders were living in constant fear that the government’s “unscientific monitoring policy” could hit their businesses anytime. “We have started branding Nepali jewellery by introducing a wide variety of jewellery, but our efforts might be affected by the government’s wrong policy,” he said.
Similarly, Hem Ratna Shakya, president of the Federation of Handicraft Associations of Nepal, sought programmes from the
government to promote gold and silver jewellery in the international market. “We are receiving larger orders for Nepali handicrafts from the international market,” he said. Silverware and jewellery worth Rs 55 million were exported as of the first half of the current fiscal year, according to Nepal Rastra Bank statistics.
Source: The Kathmandu Post
