WGC on extended mandatory hallmarking!

A pragmatic approach by the government: WGC 

Upon the announcement by Consumer Affairs Minister Ramvilas Paswan that “In the wake of the coronavirus pandemic, the government has extended an earlier deadline for mandatory hallmarking of gold jewellery and artefacts by four months” Somasundaram PR, Managing Director, India, World Gold Council (WGC) expressed his view. 

Somasundaram PR said, “The extension of time by six months for mandatory hallmarking reflects a pragmatic approach by the government to support the industry in the current environment while keeping the path of reform intact.

Soon after the announcement early this year making hallmarking mandatory and giving a transition time of one year for manufacturers and jewellers to adapt to new logistics and dispose-off non-hallmarked inventories, Covid struck causing unprecedented business disruption. 

Demand has slumped and therefore, the transition time has to be stretched to enable industry to embrace this change. However, many organised players have been selling hallmarked jewellery for years and so they may see accelerated growth in their market share - as customers will be looking for trust underpinned by hallmarking when prices are at life time high. 

The industry needs to invest in collaborative efforts to ensure effective enforcement of this critical reform and successful transition within the extended period.” It is to recollect the fact that on Monday- July 28, Ramvilas Paswan said: “Jewellers had made a request to extend the time. We have extended the deadline from January 15 to June 1, 2021, in view of the disruption in the wake of the Covid-19 crisis!” From June 1 next, jewellers will be allowed to sell only 14, 18 and 22 carats of gold jewellery.