Diamond jewellery makers facing problems with gold hallmarking

The diamond jewellery makers of Kolkata and Mumbai, the two biggest manufacturing hubs, are facing problems with hallmarking that has become mandatory from June 15. Manufacturers say that gold constitutes 10 per cent of a diamond studded jewellery and sometimes diamonds are getting damaged when the jewellery piece goes for hallmarking.

The manufacturers have requested the government and the Bureau of Indian Standards (BIS) to exempt diamond studded jewellery from hallmarking, and till such time that happens, they have requested that jewellery pieces be hallmarked before the diamonds are studded so as to avoid any damage.

These two manufacturing centres churn out diamond jewellery whose price range varies between Rs 10 lakh – Rs 2 crore. The designs of Kolkata’s diamond jewellery attract people across the globe and some of the biggest names in corporate India come to Kolkata to buy diamond jewellery.

“Firstly, the diamond-studded jewellery comprises low gravity of frame structure and in order to carry the same under the process of hallmarking, the studded diamond could somehow get damaged resulting in heavy loss.

Secondly, the total consumption of gold used in frames for making diamonds studded jewellery is less than 10% per cent of the total value for the piece of jewellery,” said Ashok Bengani, president, Calcutta Gem & Jewellers Welfare Associations said.

Bengani said that a few lakhs of diamond studding artisans are getting jobs for their inherent creativity and are specialised in making lightweight diamonds studded jewellery for exports and domestic consumption. “So, if this issue is not addressed, then the jobs of these artisans become uncertain,” he added.

Kolkata being a hub of manufacturing and the centre for world-famous hand-crafted gold jewellery – plain as well as studded with diamonds and gemstones – caters to semi-wholesalers and retailers across India.

There is a huge demand all over the world including among non-resident Indians for the country’s traditional design jewellery, especially hand-made diamonds studded jewellery. These handcrafted jewelleries are bought by Indians settled in the Middle East, South-East Asian countries, the US and Canada, among others.

A leading diamond jewellery manufacturer from Mumbai, who did not want to be named, said “If this issue is not sorted out at the earliest, it will impact exports as well as domestic trade.”

Provisional gross export all kinds of studded gold jewellery for in the first quarter of FY22 stood at Rs 8,172.40 crores as compared to Rs 864.73 crore in the corresponding period of FY21.

Courtesy: Economic Times