COVID deals another blow to troubled Kovai gold jewellery industry

“Increasing prices in the international market had brought down the sales by 50 per cent even before the lockdown. COVID-19 has dealt another death blow,” said B Muthu Venkataram, Coimbatore Gold Jewellery Manufacturers’ Welfare Association.

The district is the third leading manufacturer of gold jewellery across the country and first in Tamil Nadu. With more than 600 gold manufacturing units in the district feeling the heat, most of the goldsmiths have switched over to other work.

“I was earning up to Rs 15,000 per month. I was asked to leave a month back for want of job orders. I don’t know any other work and am clueless on what to do,” said S Krishnan, 41, a goldsmith.

“The government can consider waiving of loans for sick units as sustainability is very important. Our demands, including reducing import duty and bringing down tax from three to 1.5 per cent would help eradicate the grey market,” said Muthu Venkataram.

“We had given a memorandum to the finance minister in this regard four months ago. But there seems to be no progress. Even consumers are hesitating to invest in gold as they are looking for the prices to come down. Job loss has taken a toll on goldsmiths with more than 150 of them committing suicide over economic reasons in recent times,” he added.

Jewellery units here used to manufacture about 200 kilograms of finished ornaments per day. It had come down to 100 kgs till a month ago while this month it is almost zero business. The downfall has brought down the number of labourers in the sector here from about one lakh to 50,000 in the last few years.

Thousands of skilled labourers have abandoned the sector due to slackness in the gold business. “Most of the skilled workers have left the field to work as salespersons in textile shops, food caterers etc. Most of them hail from southern districts like Madurai and Tirunelveli and the neighbouring state of Kerala.

Now many Bengali workers had entered the craft of making jewellery here,” said Muthu Venkataram.

Jewellery made in Coimbatore is exported to Gulf countries, Singapore, Malaysia, the US, the UK and across the country. As the intensity of the virus attack is growing, the industry is likely to take a further beating in the days to come.

Kolkata, Bombay and Ahmedabad are major manufacturers of gold jewellery in the country. But each jewellery hub has its unique style, and Coimbatore is known for its handmade designs.

“As prices keep rising, the bulk buyers are giving orders by reducing the extent of wastage involved in making, which is extremely difficult to adhere. It has become very unviable and difficult to follow by goldsmiths,” said Sabari Girish, a jewellery manufacturer.

“Moreover, workers are exiting the sector as earning even Rs 400 a day has become unviable due to the present crisis. “Until a few years ago, I had about 40 people working with me. Now I have just three and they too were given forced to go on leave,” said Sabari Girish.