Jewellers in the capital are experiencing a dull season, with sales plummeting by more than half of that in last year due to the exorbitant gold price hike.
The jewellers claimed their business was further deteriorating as the government had increased the value-added tax on purchase of jewellery from 1.5 per cent to 4.5 per cent in the current national budget.
Jewellery is mainly used in the country on occasions of marriage as gifts given by family members, kin, and friends to the bridegrooms. But, people are buying less jewellery this year than before on occasions of marriage as the price has skyrocketed.
Jewellers said the upper middle class accounted for the majority of their clients. But, this year they have cut their budget for jewellery purchase drastically as they have to spend more on essential commodities including food items than any other time.
On Tuesday, most of the jewellery shops in Baitul Mokarram Market, the country's biggest jewellery market, were found almost bereft of customers. Only a few shops including the famous Venus Jewellers were seen to have some customers in.
Muzibur Rahman, owner of Rahman Jewellers, showed the empty page of the shop's sales register at 3:00pm on the day. He said not a single customer had visited the shop till that time on the day.
'The high gold price and increased VAT on jewellery sales have been putting customers at bay,' said a salesman at one of the shops.
Muzibur Rahman said people having the ability to visit aboard frequently were going to India and Dubai nowadays to purchase jewellery as the prices there were lower than that on the domestic market.
Shekhar Pramanik, manager of Khan Jewellers at the same market, said the shop's average daily sales of jewellery had declined by around 75 per cent from that of six months ago.
Shekhar said once people used to buy finger rings as gifts for newborn babies. A ring then used to cost Tk 300 to 400 but no ring can now be bought for less than Tk 5,000.
He said the income of jewellers had nosedived as the volume of purchase orders slumped over the last six months.
Riaz, a salesman at Hira Jewellers, said sales at their shop had dropped by around two-third from that of the last year.
Although their outlet often receives orders for tailor made ornaments, the sales of readymade jewellery have decreased the most, he said.
Only a few customers were found visiting Venus Jewellers, one of the country's top brands, giving orders for ornaments.
Suvash Chandra Sarker, manager of the shop, said the brand jewellers perhaps were selling a few items but the small and non-brand ones were in jeopardy.
He said jewellery had gradually been going beyond the reach of middle-income people.
Farhana Akter, a customer, said she had reduced the quantity of gold for the ornament she wanted to make from 12 anna to 5 anna because of high gold price.
She said she even could not think of giving a gift made of gold to a beloved one as the price was beyond her reach.
This week 22 karat gold was retailed at Tk 53,829 per vori (11.66 gram) compared to Tk 37,000 one year back.
The price of 22 karat gold crossed the $1,800-mark this month on the international market as big investors were increasingly investing in the 'safe' metal, selling off risky securities amid the new global economic crisis.
The gold price stood at around $1,180 in July 2010, $950 in 2009, $910 in 2008, $680 in 2007, and $630 in 2006.
Source : New Age
