What manufacturers are concerned about ? MANUFACTURERS' WOES

Covid-19 has affected every single stakeholder in the gems and jewellery industry. As demand for jewellery remains subdued in India, jewellery manufacturers worry about receiving payments from retailers, paying their staff salaries and managing overheads and the most important of all, getting back their karigars who have migrated back to their hometowns says Vijetha Rangabashyam

- Vijetha Rangabashyam

As there was zero buying from mid March up until end of May (almost), the jewellery industry in India has been going through a surfeit of challenges. The ripple effect of lockdown has led many manufacturers to worry about cash flow and getting their most-skilled workers back from their villages. The jewellery industry as we all know is highly skill oriented and every artisan is well trained for several years. There is high possibility that artisans may not return from their villages for a good 4 months. How will manufacturers meet demand if that happens? Retailers on the other hand are also finding it difficult to make payments as they are not making any sale, which in turn is putting manufacturers in a tough spot.

Will workers come back from their villages?

Anand Shah, Anand Shah Jewels

The biggest challenge is related to workers who have gone back to their villages. The challenge is to get karigars back, when the lockdown is lifted. The good karigars, who have specific skill set have to return in time to complete orders. The really talented ones are quite irreplaceable. We may have best of the designers, but ultimately we need the karigars to implement the design. Many of them are from Kolkata, their families too will not want them to come back for the next three months. They have just reached their villages and many are still on their way.

Regarding payments, they will eventually come, as all jewellers are financially stable. Retailers have not lost the money. It may take a little longer for them to pay what they owe us. So, I don’t think liquidity is matter of much concern in the long run.