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Time of India
5 days ago
- Business
- Time of India
Bullion prices cause gold, silver zari production to fall
Surat: While renowned as a diamond manufacturing hub, Surat is also the only urban centre in India that produces pure gold and silver zari, a craft that has been accorded the Geographical Indication (GI) tag. Tired of too many ads? go ad free now The industry in Surat is, however, seeing a drop in production of real gold and silver zari (called jari in Surat) due to the high price of gold. Gold zari is now accounting for less than 10% of the city's zari output, with imitation and yarn zari seeing their share increase due to their lower cost. Traditionally, real gold and silver zari are a crucial component of Kanjivaram silk saris, which are woven in Tamil Nadu. The recent surge in gold prices has led to the cost of zari rising and inflating the prices of these exquisite saris as well. This poses a challenge to manufacturers and consumers, as these traditional garments get more unaffordable. "Pure zari sari prices now start at higher than Rs 4 lakh, leaving a very small segment of customers. Due to the drop in demand for gold and silver zari, most manufacturers have shifted to imitation or yarn zari," said Bipin Jariwala, president of Surat Jari Manufacturers Association (SJMA). Metallic yarn zari costs around Rs 300 per kg, while imitation zari costs around Rs 2,500 per kg, which is made on copper or brass wire. Yarn zari has captured 50% of the market with 600 metric tonnes manufactured each month. Imitation zari has a 40% share and the rest is gold and silver zari. "Before Covid, pure gold and silver zari had a 25% share in Surat's manufacturing, but the increase in gold prices has pushed it below 10%," said Navinchandra Jariwala, a former president of the SJMA. Gold sales in India saw a decline of around 60% in June compared to last year. Tired of too many ads? go ad free now "At these high prices, it is challenging for manufacturers to invest in gold and silver to make zari. I was into pure gold and silver zari manufacturing, but recently we started manufacturing imitation zari," added Jariwala. Textile business leaders say fast-changing fashion trends are also a reason for the drop in demand. "In the past, women would buy gold and silver zari saris to use on multiple occasions over longer periods. Now, fashion changes fast and a new sari is not repeated by many. In such a scenario, only a small number of people buy these expensive sarees," said Kailash Hakim, president, Federation of Surat Trade and Textile Associations (FOSTTA).
Time of India
18-07-2025
- Business
- Time of India
Surat's push pays off: 9-karat gold to be hallmarked
Surat: In a significant move for the Indian jewellery industry, the Bureau of Indian Standards (BIS) on Friday announced that 9-karat gold jewellery will now be eligible for hallmarking. Tired of too many ads? go ad free now Until now, hallmarking was allowed only for gold jewellery of 14 karats and above. The decision comes after sustained efforts and repeated representations from the Surat Jewellery Manufacturers Association (SJMA) and other industry stakeholders. The inclusion of 9-karat gold in the hallmarking process is expected to open up new opportunities for jewellery manufacturers, enabling them to offer innovative and affordable designs. Experts believe this change will enhance consumer confidence, as hallmarking assures the purity and quality of gold — particularly important for the relatively less popular 9-karat category. The development is also likely to benefit the lab-grown diamond (LGD) jewellery segment, which is fast gaining traction due to its affordability and appeal to younger consumers. "The demand for higher-karat jewellery will always be there, but now those with a lower budget won't have to leave stores empty-handed," said Amit Korat, president of SJMA. "Hallmarking of 9-karat jewellery will build trust among consumers and expand the market." With gold prices soaring globally in recent months, jewellers have increasingly turned to lower-karat options to maintain affordability. Surat, known as a major hub for diamond and studded jewellery manufacturing, is at the forefront of this shift. The city has over 400 jewellery manufacturing units, many of which are adapting to the growing demand for cost-effective LGD and 9-karat gold pieces. Tired of too many ads? go ad free now "In the US, LGD silver jewellery is becoming a popular trend. India could follow suit. While it is legally permissible to sell lower-karat gold with a declaration, hallmarking adds an extra layer of credibility," Korat added. Industry insiders say this policy change could be a turning point, expanding the jewellery market to a broader customer base and reinforcing India's position as a global player in affordable fine jewellery.
