Govt planning to engage TCB to import bullion for jewellers
Syful Islam | Saturday, 16 April 2011
Syful Islam
The government is set to engage the Trading Corporation of Bangladesh (TCB) to import bullion for the jewellery industry since the jewellers have no legal way to get raw materials, officials said. "The TCB has the mandate to carry out trading activities. Considering the dilemma of the jewellers, we are planning to engage TCB for importing gold bar for them," a joint secretary of the ministry of commerce told the FE. "Bangladesh has a good number of skilled goldsmiths. Every year more than 20,000 of them go to India as seasonal workers. Nearly 30 per cent of goldsmiths working in India are Bangladeshi nationals. We need to patronise them," he said. The official sees a bright prospect of earning a considerable amount of foreign exchange through exporting jewellery. Jewellery has become the second largest foreign currency earning source of India and about three-fourths of global market is under the control of the neighbouring country. The ministry of commerce is also working on framing of a policy for the jewellery industry. President of Bangladesh Jewellers' Samity (BJS) MA Wadud Khan said unusual price hike of gold, lack of government support and absence of a policy have left the industry in peril. "Thousands of goldsmiths have become unemployed and quit the country for India. Some seven goldsmiths have died by drinking poison and acid. Many have left the business amid the hostile situation." He said the lack of a policy for the industry is not only hindering the business but also the government is losing an immense amount of revenue. BJS General Secretary Enamul Haque Khan told the FE that Bangladesh has no legal way to import gold bar for the jewellery industry of over Tk 50 billion yearly turnover. "We are solely dependent on individual importers (passengers) who can import up to 200 gram of gold bar each time under the baggage rule. Jewellery makers have no scope to import raw materials for the industry." He said: "Bangladesh has no gold mine. But an industry is running here without a legal source of raw materials. We buy gold from the individual importers and used gold from common people. These are the two sources for us to collect raw materials." Replying to a query Mr Khan said, "People who buy jewellery from the local shops mostly get used gold only. Because, we buy jewellery from common people and then re-manufacture or just wash those before selling." He however said the TCB may not be successful in carrying out this sophisticated business adding: "The government should engage the Bangladesh Bank or appoint any international agency through tender to perform the job."
The government is set to engage the Trading Corporation of Bangladesh (TCB) to import bullion for the jewellery industry since the jewellers have no legal way to get raw materials, officials said. "The TCB has the mandate to carry out trading activities. Considering the dilemma of the jewellers, we are planning to engage TCB for importing gold bar for them," a joint secretary of the ministry of commerce told the FE. "Bangladesh has a good number of skilled goldsmiths. Every year more than 20,000 of them go to India as seasonal workers. Nearly 30 per cent of goldsmiths working in India are Bangladeshi nationals. We need to patronise them," he said. The official sees a bright prospect of earning a considerable amount of foreign exchange through exporting jewellery. Jewellery has become the second largest foreign currency earning source of India and about three-fourths of global market is under the control of the neighbouring country. The ministry of commerce is also working on framing of a policy for the jewellery industry. President of Bangladesh Jewellers' Samity (BJS) MA Wadud Khan said unusual price hike of gold, lack of government support and absence of a policy have left the industry in peril. "Thousands of goldsmiths have become unemployed and quit the country for India. Some seven goldsmiths have died by drinking poison and acid. Many have left the business amid the hostile situation." He said the lack of a policy for the industry is not only hindering the business but also the government is losing an immense amount of revenue. BJS General Secretary Enamul Haque Khan told the FE that Bangladesh has no legal way to import gold bar for the jewellery industry of over Tk 50 billion yearly turnover. "We are solely dependent on individual importers (passengers) who can import up to 200 gram of gold bar each time under the baggage rule. Jewellery makers have no scope to import raw materials for the industry." He said: "Bangladesh has no gold mine. But an industry is running here without a legal source of raw materials. We buy gold from the individual importers and used gold from common people. These are the two sources for us to collect raw materials." Replying to a query Mr Khan said, "People who buy jewellery from the local shops mostly get used gold only. Because, we buy jewellery from common people and then re-manufacture or just wash those before selling." He however said the TCB may not be successful in carrying out this sophisticated business adding: "The government should engage the Bangladesh Bank or appoint any international agency through tender to perform the job."