Price rise hits jewellery industry

Hike in gold prices in the international market has adversely
affected the domestic jewellery business as the sale of the items has
declined drastically for rise in prices for the item at the local
market from 4.4 per cent to 5.4 per cent. The sector has been
facing a serious setback as the upward movement of gold price is
continuing since 2004, and the recent hike in prices of the precious
metal has added an extra burden on the traders. 'This has resulted
in joblessness for jewellery makers and related workers,' President
of Bangladesh Jewelers' Association MA Wadud Khan told BSS on
Tuesday. The sector has created employment of over 30 lakh people
for meeting the domestic demand and it has attained 100 per cent
international quality, he said, adding that the country could export
jewellery up to two billion US dollars every year. 'Bangladesh
easily could capture a sizeable share from the global market as the
size of international jewellery export market is 115 billion US
dollars,' he said, adding: 'A policy on export of jewellery is
required facilitating the traders with necessary support.'
'jewellery is the second largest foreign exchange earning export
sector in India,' he said, adding a large number of skilled workforce
has been migrated to India as the domestic market has shrunk over
the last few years. 'Over 40 per cent of India's skilled workforce
in this sector belong to Bangladesh and they would return home if the
demand for jewellery in the domestic market could be enhanced and
side by side with creation of an international business for
Bangladesh,' he said. Since jewellery is a fashionable item, the
growth of the industry depends on innovations in designs, he said,
adding that an international jewellery fashion design institute could
be established for providing proper education in order to a build a
creative designers' team. Referring to the recent assurance of the
government of formulating a jewellery policy, he said Bangladesh
Jewelers' Association could set up a jewellery fashion design
institute in the country if the government provides the association
with a land. Under the policy, the government could facilitate the
genuine traders in getting gold from Bangladesh Bank and other
scheduled banks and could provide other facilities, including cash
incentives and easy loans, he added.