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GJEPC urges Central Government & RBI to revise credit terms for payment-hit exporters

13 february 2020

The Gems and Jewellery Export Promotion Council (GJEPC) of India has urged the central government and the Reserve Bank of India (RBI) to revise credit terms for the payment-hit exporters, according to a TOI report.
Diamantaires and jewellery exporters in Surat and Mumbai have been facing a serious issue of delayed payments from Hong Kong owing to the prolonged anti-government protests and also from the recent coronavirus outbreak. 

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Image credit: stevepb (Pixabay)


In a statement, Pramod Kumar Agarwal, Chairman-GJEPC reportedly stated that Surat has an exposure of about 40% with Hong Kong and mainland China. The protests and the virus outbreak in China have disrupted the business including delay in the payments.
In its letter addressed to RBI, Finance Minister, and Ministry of commerce, GJEPC is reported to have pointed out that protests in Hong Kong commenced around April 2019 and have turned violent since Sept-Oct 2019. This has disrupted business in many ways, with offices being partially closed due to violent protests; clearance of parcels exported getting delayed and overall slowdown of trade. GJEPC said that this has impacted the turnover and financial dealings with the traders based out of Hong Kong with India, the financial implications of which have led to delay in shipments and delay in receipt of export proceeds. Further, the council states, “As if this was not enough, the breakout of coronavirus in mainland China and then spreading to other countries too have also led to adverse impact on gems and jewellery trade in these regions too.” 
The business has thus been facing severe hurdles with commitments not being fulfilled in exports and for inward remittances, they said. Moreover, a major trade fair scheduled for March too has been rescheduled for May. “The trade foresees major imbalance in payments for the community dealing with various merchants in this part of the world. The RBI should consider giving leeway and time for credit facilities availed by exporters/importers for meeting their financial commitments,” GJEPC stated.

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished