Small jewellers welcome fee relief

Small jewellers welcome fee relief

Hyderabad: In a major relief to nearly one lakh small-scale jewellers in Telangana, the Bureau of Indian Standards (BIS) has given an exemption on payment of Rs 10,000 towards registration fee to get their jewellery hallmarked from BIS-recognised assaying and hallmarking centres (AHCs).“To bring all jewellers, including small-scale jewellers, under the BIS hallmarking scheme, the ministry of consumer affairs has exempted the registration fee which was ranging from Rs 1,000 to Rs 20,000 annually,” head and scientist-E, BIS, Hyderabad, KV Rao told STOI.Jewellers said this move was a huge relief, especially for those in rural areas where the footfall is very low. “Following this decision, the jewellers can obtain registration without paying any fee to the BIS and get their jewellery hallmarked from the AHCs,” said a BIS official.Manohara Chary, a goldsmith in Pot Market in Secunderabad, said they were yet to recover from huge losses suffered during hte pandemic and lockdowns.“It is very difficult for us to pay Rs 10,000 to get our jewellery articles hallmarked. Regular customers continue to visit our small outlets only because of decades long trust and connection,” he told STOI.S Badhraiah, a goldsmith, said the exemption of Rs 10,000 was a major relief. “Our turnover per annum is between Rs 50,000 and Rs 1 lakh. We do not get bulk orders,” he said.Goldsmiths in Ameerpet opposed hallmark unique identification code norm and said the central government should re-examine this

Luxury jewellers risk funding military abuses in Myanmar: Report

Global Witness says international jewellers must review their supply chains to ensure they are not funding conflict, corruption or state oppression in Myanmar.

An anti-corruption group has put luxury jewellers on alert about their possible role in funding human rights abuses in Myanmar, saying the country’s lucrative gemstone industry has emerged as an “important source” of revenue for its military rulers.

In a report released last week, Global Witness said Myanmar’s military, which seized power in a coup on February 1, is now in control of the country’s multimillion-dollar gemstone industry.

It said official data indicates the sector, which includes trade in rubies, sapphires and other gemstones, was worth on average from $346m to $415m per year from 2014 and 2017. But when accounting for the illicit trade in these gemstones, the report said the industry could have been worth an average of $1.73bn to $2.07bn annually over the four years.

Given the military’s control of the sector, as well as international sanctions on Myanmar military conglomerates linked to the gemstone trade, Global Witness said “all companies must urgently review their supply chains, to ensure they are not funding conflict, corruption, or state oppression in Myanmar”.

The group’s report, based on more than 150 interviews with public officials, community members and industry representatives, said all gemstone mining in Myanmar is illegal at present, as all the licences issued by the country’s toppled civilian government had expired in 2020, a year before the coup.

The military is yet to issue any licences publicly, but since its power grab, informal mining has “exploded” in the country, Global Witness said, with tens of thousands of workers flocking to the mines in Mogok in the central Mandalay region, paying bribes to the military.

This informal mining is taking place against a backdrop of “extreme instability” in Myanmar, including in Mogok, the report said, with the military accused of committing crimes against humanity, including by killing hundreds of anti-coup protesters as well as launching attacks on civilians in the country’s border areas.

Still, jewellers, auction houses and mass-market retailers are continuing to buy and market rubies and other precious stones from Myanmar, it said.

‘Funding atrocities’

Processed in Thailand, the gemstones from Myanmar are sold to international jewellers and “and ultimately to customers who have no way of knowing whether they are funding atrocities”, it said.

Only one of 20 dealers Global Witness spoke to in Thailand, Fai Dee, was able to identify a specific mine where one of its rubies originated.

That particular mine, Shwe Pyi Aye, has been controlled since 1995 by Myanmar Economic Holdings Limited (MEHL), one of two main military-controlled conglomerates sanctioned by the United States, United Kingdom, European Union and Canada.

A company representative from Fai Dee told Global Witness that there was “no way” to say exactly when the ruby was mined, according to messages seen by Al Jazeera. The representative told the Global Witness investigator, who was posing as a customer, that it sells its rubies to leading American and British brands like Harry Winston, Graff, Sotheby’s and Christie’s.

Locals search for rubies in wastewaters from a nearby ruby mine in Mogok on February 28, 2014 [File: Soe Zeya Tun/ Reuters]

The open pit of a ruby mine is seen in Mogkok on February 27, 2014 [File: Soe Zeya Tun/ Reuters]

When asked for a response, a lawyer for Fai Dee told Al Jazeera that the company did not acquire the Shwe Pyi Aye ruby at a time when MEHL controlled that mine and that much of its collection pre-dates 1995.

The lawyer also said Fai Dee has been operating for 100 years and has acquired a number of gems in that time originating from Myanmar, but that “Fai Dee has not purchased from any mine or government enterprise in Myanmar” since 2008, when the US imposed sanctions on military conglomerates linked to the gemstone trade.

These sanctions were lifted in 2016 following a transition to civilian rule, but were reimposed this year following the military coup.

Fai Dee’s lawyer said the company “has not violated any sanctions relating to Myanmar, nor contributed in any way to human rights abuses in that country”.

Other Thai dealers, while publicly claiming they have stopped sourcing rubies from Myanmar are continuing to do so, according to Global Witness. One company told a Global Witness investigator who was posing as a customer that they could still do so as of July this year.

Due diligence

Global Witness also said it had also contacted 30 international jewellers, auction houses and mass-market retailers that sell gemstones, based in the US, Europe and Asia.

“We found that most of them did not have adequate due diligence measures in place to ensure that their supply chains were not funding abuses. As a result, these companies may have been funding Myanmar’s military, one of the world’s most brutal regimes, helping to sustain its abusive power over the people of Myanmar.”

Peter Kucik, a US sanctions expert with experience working on Myanmar since 2007 and direct experience assessing the gems sector in Mogok, told Al Jazeera that Global Witness’s findings were in line with his own.

Noting Myanmar has been subject to various sanctions regimes, which were imposed in 2008, lifted in 2016 and then imposed again in February after the coup, Kucik said in terms of sanctions liability, companies would only need to be concerned with gemstones sourced since the February coup.

But he said there is no way to determine whether a ruby was mined in 2017 or 2021.

A man picks up rubies at a ruby mine in Mogok February 27, 2014 [File: Soe Zeya Tun/ Reuters]

“There’s literally no way to do it. Because of the difficulty or impossibility of identifying licit sources, the default new solution appears to be the same as the old one – cease sourcing any rubies from Myanmar to try and cut off the junta’s revenue stream,” he said.

Kucik said sanctions policies are “strict liability”, meaning that if a US company ended up with a Myanmar ruby that violated sanctions, it would still be a violation, even if the company did not know its origin.

“If I go to Thailand and buy a briefcase full of rubies and the seller says these 100 percent didn’t come from Myanmar, but they did, I still have a problem, but that would be weighed in terms of what enforcement mechanism would be used. That ranges in possibility from a cautionary letter all the way to referral for criminal investigation if there is a willful violation,” he said.

Global Witness said only three companies, Tiffany & Co, Signet Jewellers and Boodles have publicly declared that they have stopped sourcing gemstones from Myanmar since the coup. Cartier and Gubelin told the group the same, while Harry Winston issued a public statement on December 9 saying it will also stop sourcing gemstones from Myanmar.

“In its ongoing commitment to responsible and ethical sourcing, the House of Harry Winston will no longer source gemstones from its suppliers that have Burmese origins, regardless of their importation dates,” it said.

Al Jazeera reached out to Sotheby’s and Christie’s for comment. But there was no response at the time of publication.

BIS checks Hyderabad jewellery outlets, takes 70 samples for HUID code

HYDERABAD: After initiating the hallmark unique identification (HUID) code to gold and jewellery articles, the Bureau of Indian Standards ( BIS ), in a major step, has started collecting samples of articles from BIS-registered jewellers for verification of authenticity.As part of the exercise across the country, officials of Hyderabad BIS randomly inspected 70 jewellery outlets and collected 70 samples in the city. “A team of BIS officials inspected 70 jewellery outlets in Abids, Secunderabad, Madhapur, Gachibowli, Kukatpally and other parts and collected the samples to check HUID which contains a six-digit number. These samples have been sent to BIS referral lab in Chennai,” head and scientist-E, BIS, Hyderabad, KV Rao told STOI.HUID number is a six-digit alphanumeric code consisting of numbers and letters. HUID is given to every piece of jewellery at the time of hallmarking and it is unique for every piece of jewelleryThe lab authorities will check the weight of jewellery, jeweller’s name, assaying and hallmarking centre’s (AHC) name and match it with the details provided by the jewellers and send a report to the BIS.“The samples are drawn either by cutting or drilling or scrapping. This facility is available with all the BIS-registered jewellers,” Rao said. He said the report takes a month at least. BIS Hyderabad branch office also maintains the database of the samples collected.City-based jewellers told STOI, “We are strictly following the HUID code for the benefit of customers. If we ignore this norm, our outlet name and fame will be tarnished.”The BIS also has powers to initiate action against the jewellers and AHCs if a negative report received from the Chennai referral lab, a senior BIS official said.Sunil Agarwal, vice-president of South Zone Indian Association of Hallmarking Centres, Telangana, agreed that the BIS officials have the liberty to check their outlets and AHCs and collect the samples.“We are requesting the BIS to enhance the collection fee from Rs 30 per piece for HUID code to Rs 60 per piece,” he said. He said there are 2,000 to 3,000 jewellers doing gold jewellery and silver articles business in the city.

Masked gang smash into jewellers in terrifying Christmas Eve raid

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A mask gang smashed through a jewellery store and rode away on electric scooters in a terrifying Christmas Eve raid.

Merseyside Police were called to Broadway Jewellers on Utting Avenue East, Norris Green at around 4.20pm on Christmas Eve following reports of a robbery.

A group of masked men forced entry into the jewellers and threatened staff inside the shop.

READ MORE:The 20 most wanted people in the UK

The men, who stole several items of jewellery, fled the scene on electric scooters towards the direction of Long Lane.

Officers are currently carrying out CCTV and witness enquiries in the area.

Forensics officers were also seen working inside the shop.

Anyone with information is asked to DM @MerPolCC on Twitter, quoting reference 594 of 24 December.

You can also pass information anonymously via Crimestoppers on 0800 555 111, or contact them via their online form at: https://crimestoppers-uk.org/give-information/give-information. Always call 999 if a crime is in progress.

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Jewellers make hay on the back of bumper wedding season

After cancelling her wedding twice — once in May 2020 during the nationwide lockdown as the first wave of the COVID-19 pandemic struck the country and then again in April 2021, due to the second wave — Shraddha Jaiswal, a 27-year-old IT professional could finally tie the knot with her long-time beau in November.

“We had suffered huge financial losses last two times and were really worried about a third wave but finally, things materialised this time around,” she said.

Jaiswal joins a very long list of men and women getting hitched this wedding season. According to WeddingWire India, the Indian subsidiary of The Knot Worldwide, about 2.5 million weddings are scheduled to take place during the wedding season in November and December. As per the report, November 2021 would have seen a 57 percent surge in weddings as compared to a year ago.

The occurrence of record weddings has resulted in increased spending by consumers. Demand for discretionary categories such as jewellery and ethnic clothing, on a slump since the pandemic hit, has shot up. As a result, companies in jewellery and discretionary goods sector will report strong sales in the December quarter, said analysts.

“In the last two-three months, our sales have almost doubled in comparison to the same period last year,” shared Saurabh Gadgil, chairman and managing director, PNG Jewellers. PNG Jewellers runs 27 stores mostly located in the West.

Other jewellers from across the country, too, reported a surge in sales in the last two months of the year, which had several wedding muhurats or auspicious days for weddings.

Senco Gold and Diamond witnessed a 30 percent jump in footfalls, while its sales have climbed by 30-35 percent this wedding season, the company’s CEO Suvankar Sen told Moneycontrol.

Jewellers said pent-up demand coupled with increased intent towards investing in gold has also led to a rise in jewellery sales this season.

Smaller towns also are riding the trend. According to Vaibhav Saraf, Director, Aisshpra Gems & Jewels, which runs eight stores in Uttar Pradesh including in Lucknow and Gorakhpur, sales have jumped almost 50 percent when compared to the pre-pandemic times.

“We are also seeing an increase in ticket size. In Lucknow, which is a tier I city, the average ticket size for bridal jewellery has increased from Rs 30 lakh to Rs 50 lakh, while in tier II and beyond towns we are now selling bridal jewellery in the range of Rs 10-15 lakh as compared to Rs 6-8 lakh before,” he added.

More and more consumers are looking for non-traditional designs, buying experimental jewellery with a contemporary look and upgrading to diamond and studded jewellery, reported jewellers.

“New-age brides are now open to experiments. They also look for the wearability factor in jewellery,” said Ahammed MP, Chairman, Malabar Gold & Diamonds.

Earnings Impact

Analysts expect most jewellery companies to report stellar December quarter earnings backed by the sales growth due to weddings and the festive season.

According to Jay Gandhi, AVP - Consumer Discretionary at HDFC securities, jewellery players are expected to report revenue growth of about 15-25 percent in the fiscal third quarter-ended December.

“Based on our channel checks, we found out that most big-box jewellers have clocked 15-25 percent growth during the festive season (October and November sales). Usually, after October and November, as the festive season ends, there is a slump in jewellery sales in December, however, this time around the demand has sustained due to the huge number of weddings,” he added.

Analysts, however, also say that the stock prices have already factored in the earnings growth and most stocks are trading at a premium.

“Titan Company, for instance, is already trading at 75-76 times its price to earnings. Historically, the stock has traded 45-50 times its earnings but now it is at 75 and this shows the optimism in the market,” said Gandhi.

The higher consumption of gold jewellery, however, has inflated the country’s import bill and also resulted in a jump in gold imports in the country. According to Kshitij Purohit, lead, commodities and currencies, CapitalVia Global Research, gold imports have jumped by 20 percent year-on-year during the third quarter as jewellers imported more gold to meet the increased demand for the products.

The bumper weddings happening this season, in fact, are expected to push gold imports to a six-year high to 900 tons, as per metals research consultancy Metals Focus, reported Bloomberg. India had imported 350 tons of gold last year, according to the World Gold Council.