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Fall in rupee value causing loss to jewellers in Jaipur

December 17, 2011 - Jaipur

The fall in the value of rupee in international markets is causing loss to jewellers in Jaipur city.

The Jaipur Jewellers' Association claimed the deprecation of rupees against the dollar had made the import of gold, silver bullions and rough gems stones dearer by 10 to 12 percent.

"India imports almost all the precious metals whether it is gold or silver. We also import unpolished gemstones such as diamond or coloured gemstones. As a result of the depreciation of rupee the cost of these commodities has gone up by 10 to 12 percent," said Naval Agarwal, spokesperson of the association.

To make the situation worse, the foreign traders have reduced the prices of the product by reducing the cost of making and other charges.

"The foreign traders also want to take advantage of the situation. They have reduced the prices of the product by cutting such as making charges and other charges," added Agarwal.

The exporters claimed continuous dip in rupees' value had made the gold market volatile and uncertain.

"Export has become uncertain due to volatility and uncertainty in the market and even the gold market has become uncertain," added Lalit Agarwal, a jewellery exporter.

The rupee fell to a fresh low of 54 per dollar.

An 18 percent slide in the value of the rupee since July is adding to a growing worry of economic crisis in the country as stubbornly high inflation ties the hands of the central bank from easing policy to try to turn a grim economic outlook.

The slide in the rupee has caught policymakers flat-footed and by firing up import costs it is undermining the Reserve Bank of India's forecast for inflation to drop to 7 percent by March.


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