Gold crunch hits industry
Handicraft producers said that they had been forced to buy gold smuggled in from India to keep their workshops running
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KATHMANDU, SEP 14 -
Production and export of handicraft products containing gold have been affected by the current scarcity of the yellow metal, said the Federation of Handicraft Associations of Nepal (FHAN).
Gold is used in plating metal craft, painting thankas and in jewellery and statues. Handicraft makers have not been able to buy gold in the domestic market for the last three weeks because of a shortage resulting from a continuing row between gold traders associations.
“Production of handicraft products requiring gold has dropped as there is no gold in the market," said FHAN president Bikash Ratna Dhakhwa. “It has put the export of gold plated metal craft, statues and jewellery at risk."
Gilded handicraft goods worth Rs. 380 million are exported to 80 countries annually. Dhakhwa said that actual exports were three to four times greater as the handicraft goods bought by tourists and carried in their luggage are not recorded.
Handicraft producers said that they had been forced to buy gold smuggled in from India to keep their workshops running. “We have no option but to buy gold at a higher price," said Suresh Maharjan of Chakupat, Patan, an artisan who gilds metal statues. He added that they had been paying more than Rs. 32,000
for 10 gm of gold.
FHAN has demanded that the government allow the import of gold in the required quantity or authorize it to issue recommendations to procure 5 kg of gold and 100 kg of silver daily, a right given to gold traders associations.
“We need at least 5 kg of gold and 100 kg of silver per day for the production of handicraft products," said Dhakhwa. “Soon, we will approach Nepal Rastra Bank with this demand in coordination with the Federation of Nepalese Chambers of Commerce and Industry (FNCCI)."
Earlier, handicraft producers used to buy gold from dealers who get their stocks from commercial banks. Around 12 commercial banks were involved in importing gold from the international market.
Posted on: 2010-09-14 09:36
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