Gold prices, on a downswing, are expected to reduce further due to easing of import norms and decrease in international prices.
The price of gold has been going down for a month now for several reasons, including strengthening of the rupee.
On Tuesday, one gram of 22-carat gold was priced at Rs. 2,538.
N. Anantha Padmanaban, regional chairman of All India Gems and Jewellery Trade Federation, said sales of the yellow metal had shot up by 40 per cent this month, as compared to June last year.
“In one month, business at several shops in the city increased by 25 per cent because of the continuing dip in rates,” he said. However, the jewellery industry still faces challenges such as scarcity of raw material and customs duty of 10 per cent on gold.
Members of the federation plan to meet the Union ministers of finance and consumer affairs, next week, and submit a charter of demands.
Manish Jain, the federation’s vice-chairman, said: “We are seeking a decrease in customs duty from 10 per cent to four per cent. This will bring down the cost and also reduce the scarcity of gold.”
There has also been an increasing trend of tourists purchasing gold from abroad.
Members of the federation also want 20:80 gold import norms to be eased further as they have to depend on trade houses and banks, as one-fifth of imports have to be exported.
Another demand is to increase the maximum limit of cash in exchange of gold from Rs. 20,000 to Rs. 2 lakh. “The ceiling on cash was imposed when the price of 10 grams was Rs. 2,500. Customers who are in urgent need are put to hardships as we issue cheques,” said Mr. Padmanaban.
On Tuesday, the federation launched ‘Labham’, a workshop for jewellers, covering topics such as compliance with norms, best business practices and security measures.
