Kolkata: The All India Gems and Jewellery Trade Federation (GJF) is planning to put forward a communication to Finance Minister Pranab Mukherjee with a three-pronged agenda to offer a stimulus package to the country’s Rs 1,12,000-crore jewellery industry.

The agenda of GJF includes asking the government to eliminate import duty on gold and silver, removing the cap of 99.5% purity on gold that can be imported and allowing import of gold under OGL (open general license).

In the Union Budget 2009-10, the finance minister had proposed to hike the customs duty on gold bars from Rs 100 per ten gram to Rs 200 per ten gram and that on silver from Rs 500 per kg to Rs 1,000 per kg.

Talking on the sidelines of EIJS (East India Jewellery Show), All India Gems and Jewellery Trade Federation Vice-Chairman Bachraj Bamalwa stated, “The gold import duty hike will spur smuggling from countries like Bangladesh, Nepal, Dubai and Pakistan at a time when 100% of the gold is being imported through official channels.”

He added that GJF would also be asking the government to allow import of gold of any purity instead of the 99.5% purity that is standard now.

He said, “Right now, a lot of gold from South African mines goes to UK and Switzerland for further purification after which India imports it. If the cap on purity is removed, it would encourage many refineries in India and also open up employment generation.”

India imports about 700-800 tonnes of gold every year though last year, the figure had come down to 400 tonnes because of high gold prices and the overall slowdown.

Bamalwa said, “This year, from January to June, only 60 tonnes of gold have been imported.” He added that jewellers may be forced to commence some kind of agitation if their demands are not fulfilled.

The Gem and Jewellery Export Promotion Council eastern region chairman Pankaj Parekh said that exports were showing a negative growth of 27% though they had picked up 2% in the last three months.