Home / Knowledge / News / Fashion / Gems and Jewellery sector's wish list to tackle crisis
Gems and Jewellery sector's wish list to tackle crisis
Dec '08
Mr Mehul Choksi
Mr Mehul Choksi
FICCI Gems and Jewellery Committee Chairman Mr. Mehul Choksi in a recent meeting with the Commerce Secretary Mr. G.K Pallai have proposed the following measures:

1.Pre-shipment finance period may be increased to 180 days from 90 days and post-shipment finance period may be enhanced to 270 days from 180 days at the uniform rate of interest @ 7 % per annum in Rupee
2.Rate of Interest for dollar finance maybe made available @ LIBOR + 0.75 %. Banks maybe instructed to subsidize or do away with their additional charges of commission on granting the above Dollar loans
3.Crystallization period maybe revised to 60 days after due date instead of 30 days.
4.Relaxation of penal interest or crystallization upto a period of next 1 year on all exports made w.e.f 1/1/08 for which payments have been delayed. An additional AD HOC provision to be created to the tune of 25% for an initial period of 1 year in order to maintain consistency. The dollar support for such non-crystallization period may be provided by the RBI.
5.The credit rating of the company should not be effected or reduced due to delay in receivables
6.An provision for discounting outstanding export bills of the Indian exporters with the bankers, against the local bills maybe sanctioned
7.SEZ units may be allowed to sell 25% of their total production to DTA
8.RBI may lend part of its reserves to nominated agencies for further lending the same to Indian exporter to augment shortage of gold bullion in Indian market.
9.Banks may be pressurized to sanction a percentage of their provision to lend gold loans to Indian exporters and strict vigilance to be maintained by RBI with them to not divert funds/limits to other beneficial areas of lending.
10.SEBI may allow Indian Gold ETFS to lend gold to bullion banks at nominal interest rate to improve liquidity in the market.
11.Bullion loans to Indian banks maybe made attractive by reducing/waiving SLR requirements on this product.
12.Concessions maybe given on gold loans granted, on amount of capital allocation required.
13.Government may turn guarantor to Export Credit Guarantee Corporation (ECGC) to ensure the rate of export credit insurance premium may be reduced by the ECGC for our exporters
14.Large bars (London Good Delivery Bars) maybe imported at the same duty of Rs 10300 per kg. Even though weight inscribed on each bar is in Ounces and not in metric units. (Currently duty concession is allowed only to bars which are serially numbered and have weight inscribed by manufacturers in metric units)
15.The import of gold by nominated agencies for supply to exporters should be de-linked from the CRR requirement of banks, as this is acting as an impediment for them to supply gold to the exporters and adding to the high finance costs.
16.Increase in the number of nominated agencies who import gold for easier availability of gold, since gold is an important raw material in the jewellery trade.

Must ReadView All

Cotton production and exports in West Africa. Courtesy: FAS/USDA

Textiles | On 23rd Oct 2018

Record cotton production to drive West Africa exports

Cotton exports from West Africa for 2018-19 are projected to surpass...

Courtesy: Prudence Earl on Unsplash

Textiles | On 23rd Oct 2018

Sri Lanka's textile exports up 4.7% in Jan-July '18

Sri Lanka’s earnings from textiles and garments exports increased by...

Courtesy: Jens Mahnke from Pexels

Textiles | On 22nd Oct 2018

India levies anti-dumping duty on flax yarn from China

The ministry of finance, Government of India, has imposed definitive...

Interviews View All

Sanjay Desai & Ashish Mulani, True Colors

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Binoy Ravjani, Hero's Fashion

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Milind Khandwe, Hindoostan Innovation Centre

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Ravi Raj Desai,

Ravi Raj Desai

Himalaya Cotton Yarn Ltd manufactures high quality denier. The spinning...

Akshat Chaudhary,

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Shyam Gupta & Ravi Gupta,

Shyam Gupta & Ravi Gupta

Based out of South Delhi, Gargee Designer's provides bespoke formal and...

Marcel Alberts, Eurofibers

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Mohammad Hassan, Biax Fiberfilm

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kazuaki Yazawa, Purdue University

Kazuaki Yazawa
Purdue University

Scientist <b>Kazuaki Yazawa</b> has developed thermoelectric semiconductor ...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Pranav Mishra, Huemn

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Priya Somaiya, Usha Social Services

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

October 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search