Only 10% of Indian jewellers opt for hallmarked gold ahead of wedding season

Kolkata: Barely 10% of about 300,000 jewellers in the country have opted for hallmarked gold, for which the government has extended the deadline to June 1 from January 15. As a result, many families may not be able to buy hallmarked jewellery in the wedding season.

This year, April, May and June have the highest number of marriage dates, with May alone having 15 auspicious days for wedding. Many marriages that were postponed last year due to the pandemic have been rescheduled to this year.

Jewellers said that since there were hardly any sales in 2020 due to the pandemic, the old stock is lying with them. If they opt for the mandatory hallmarking now, they will have to melt the entire gold jewellery inventory and give it for assaying. In the process, they will lose the making charges.

“Jewellery does not move fast like other products as it is a high-value thing. Therefore, some jewellers have stocks which are four to five years old. If they go for hallmarking, then they will have to melt this jewellery and face losses on jewellery making charges,” said Ashish Pethe, chairman, All India Gem & Jewellery Domestic Council. “We need time till the end of this year for jewellers to sell off their stocks and opt for hallmarking. Also, the hallmarking and assaying centres are not evenly spread across the country. Jewellers have to travel distances to get their jewellery hallmarked.”

The government has made hallmarking mandatory for 14 carat, 18 carat and 22 carat jewellery. But in Maharashtra, brides are given 23 carat and 24 carat pure jewellery in weddings as streedhan (in Hindu law, assets over which the wife has rights). Since the government has not made hallmarking mandatory for these categories of jewellery, families in Maharashtra have to buy non-hallmarked jewellery.

Pethe said the council has requested the government to include 23 carat and 24 carat for mandatory hallmarking. This will ensure consumers don't get cheated while buying gold ornaments and get the same purity and carat as marked on the ornament, he said.

According to the Bureau of Indian Standards (BIS) website, Rs 35 per article has to be paid for getting jewellery hallmarked.

“As of now, only 400 tonnes of gold out of annual consumption of 1,000 tonnes is hallmarked. The government should increase awareness among consumers as well as among jewellers for mandatory hallmarking,” said Harshad Ajmera, former president of the Indian Association of Hallmarking Centres.

If hallmarking is not done by the deadline, jewellers will not be able to continue their business. Small jewellers in tier 2 and tier 3 cities and in rural areas are particularly vulnerable while large organised retail chains stand to gain.

Malabar Gold & Diamonds said it spends Rs 20 crore annually on hallmarking of its gold jewellery being sold at its stores in India and abroad.

“Once BIS hallmarking becomes mandatory, customers won’t be able to resell gold jewellery without hallmarks. Therefore, the government, jewellery trade organisations and other trade stakeholders must come forward to create widespread awareness among consumers on the benefits of purchasing hallmarked jewellery,” said Ahammed MP, chairman, Malabar Gold & Diamonds.