Many jewellery shops in the city are experiencing a dip in footfalls as customers hesitated to purchase and carry home jewellery since the election Model Code of Conduct was enforced.
Jewellers in the city noted that sales were severely affected as footfalls had dropped by a minimum 30% due to fear of being questioned by Election Commission static surveillance teams or seizure for carrying cash or gold. Business was reviving after relaxations in COVID-19 lockdown period and such measures would further cripple the trade, the jewellers felt.
Moreover, transactions between manufacturers, wholesalers and retailers have dropped by 40%. This is to avoid seizure of jewellery that are meant to be supplied to retailers despite having supporting documents.
Office bearers of the Jewellers and Diamond Traders' Association Madras recently represented to the Chief Electoral Officer, Tamil Nadu to lay down guidelines on documents to be carried along with ornaments to avoid seizure and also instruct field level officers.
S.Santhakumar, the association’s general secretary said the recent budget announcements on import duty and drop in gold prices had helped bring in more customers into the jewellery stores. However, business has slowed down despite the wedding season.
Though jewellers or staff members carried various documents, they faced several hardships and there were many instances across the State where the ornaments were seized. For example, a piece of ornament has to be transported to other areas for various stages like polishing, cutting and designing. But, ornaments are waiting to be finished due to such hassles.
“We have requested the Election Commission to lay down guidelines on the set of documents to be carried to prevent such seizures and allow movement of goods. The officials at field level must also be instructed to accept them as proof of authentic business transaction,” he said.
On the fluctuations in gold price, jewellers noted that the cost was volatile due to the demand and supply in the international gold market.
