Uncertainties over mandatory hallmarking of gold
Sunday, 3 June 2007
CHENNAI, Jun 2 (PTI): Lack of security provisions coupled with inadequate infrastructure and lukewarm response from jewellers have put the government decision of making hallmarking mandatory for gold from January 1, 2008 into uncertainties.
According to Bureau of Indian Standards (BIS), which issues the hallmark certifying the purity of gold, only around 400 tonnes of the yellow metal have been assayed since it launched voluntary hallmarking in 2000, whereas annual consumption was about 3,900 tonnes during these years.
The BIS authorities agree that it is an uphill task. "If the jewellers are not ready by that time (by January, 2008 ), there is likely to be a confusion," P. Sengupta, Deputy Director General of the BIS, told PTI here.
Out of the estimated three lakh registered jewellers in the country, only less than 4,000 have got the BIS certification which entitles them to test their gold items in the licenced assaying centres of the organisation.
According to L.K. Syed Ahmed, President of Madras Jewellers and Diamond Merchants Association (MJDMA), "It is humanly impossible to check the non-hallmarked jewellery within seven months."
But Ahmed said though the jewellers were not against hallmarking but their concern was over inadequate number of testing centres and the lack of security provisions.
At present there are only 50 licenced testing centres in various cities across India.
"The five centres in Chennai are not sufficient to test the huge quantum of gold jewellery being sold in the city. Among these five, three are dysfunctional," Ahmed claimed.
Sengupta also feels that the number of centres were not sufficient. BIS had invited applications from persons interested in setting up testing centres. The government had also announced a 15 per cent subsidy which amounts to Rs 15 lakh for setting up new centres.
As per official records, the BIS till now has received only eight applications seeking licences to set up testing centres, which were being processed.
"Lack of adequate security to safeguard the jewellery sent to the testing centres was a major problem," said Ahmed.
"Usually it takes four to five days for testing. What security is government providing us while transporting crores worth ornaments and when it is kept at the centres," he asked. MJDMA joint secretary S Badrinarayan said that he has received complaints from jewellers saying that the same article was tested differently by different centres.
"The gold which had been tested at one centre failed to record the same caratage at a different centre," he said. According to Ahmed, hallmarking should be made mandatory for jewellery manufacturers and not retailers "who are just agents
The jewellers also do not want the government to interfere with the accounting of stocks and verification of records. "BIS can check the quality, but it should stop with that," said Ahmed.
According to Bureau of Indian Standards (BIS), which issues the hallmark certifying the purity of gold, only around 400 tonnes of the yellow metal have been assayed since it launched voluntary hallmarking in 2000, whereas annual consumption was about 3,900 tonnes during these years.
The BIS authorities agree that it is an uphill task. "If the jewellers are not ready by that time (by January, 2008 ), there is likely to be a confusion," P. Sengupta, Deputy Director General of the BIS, told PTI here.
Out of the estimated three lakh registered jewellers in the country, only less than 4,000 have got the BIS certification which entitles them to test their gold items in the licenced assaying centres of the organisation.
According to L.K. Syed Ahmed, President of Madras Jewellers and Diamond Merchants Association (MJDMA), "It is humanly impossible to check the non-hallmarked jewellery within seven months."
But Ahmed said though the jewellers were not against hallmarking but their concern was over inadequate number of testing centres and the lack of security provisions.
At present there are only 50 licenced testing centres in various cities across India.
"The five centres in Chennai are not sufficient to test the huge quantum of gold jewellery being sold in the city. Among these five, three are dysfunctional," Ahmed claimed.
Sengupta also feels that the number of centres were not sufficient. BIS had invited applications from persons interested in setting up testing centres. The government had also announced a 15 per cent subsidy which amounts to Rs 15 lakh for setting up new centres.
As per official records, the BIS till now has received only eight applications seeking licences to set up testing centres, which were being processed.
"Lack of adequate security to safeguard the jewellery sent to the testing centres was a major problem," said Ahmed.
"Usually it takes four to five days for testing. What security is government providing us while transporting crores worth ornaments and when it is kept at the centres," he asked. MJDMA joint secretary S Badrinarayan said that he has received complaints from jewellers saying that the same article was tested differently by different centres.
"The gold which had been tested at one centre failed to record the same caratage at a different centre," he said. According to Ahmed, hallmarking should be made mandatory for jewellery manufacturers and not retailers "who are just agents
The jewellers also do not want the government to interfere with the accounting of stocks and verification of records. "BIS can check the quality, but it should stop with that," said Ahmed.