GJEPC: Gem, jewellery exports to be flat

The industry is betting on the Christmas sales in the US to push up the exports.

“We are facing some challenges in financing. We are sorting out with the government and banks. Risk profile of our sector has increased and advancing to the sector is based on the profile. Banks are putting certain regulations and asking more collateral,” Gem and Jewellery Export Promotion Council (GJEPC) ED Sabyasachi Ray said here.

“Collateral is around 20-25 per cent of total limit and we are ready to move it up to another 10-15 per cent depending on the scenario,” he said.

Banks’ exposure in the sector is around Rs 60,000 crore and cash flow still remained an issue, the council’s Chairman, Pramod Kumar Agarwal, told the media after the inauguration of the first ever India Jewellery Buyer Seller meet.

Last year, total gem and jewellery exports stood at around $41 billion and during April-October period of the current fiscal the gross exports were down by 1.48 per cent in dollar term.

“Maybe in rupee term, we may clock growth. But in dollar term, exports are expected to be flat,” Ray said. “Early indications are positive in terms of sales in the US and the industry is looking for Christmas sales in the US.”