Govt to make hallmarking of gems, precious stones compulsory

You may still have doubts whether an emerald or a ruby can change your destiny. However, an assurance of its quality is guaranteed as the government will soon make hallmarking of gems and precious stones compulsory as part of the plans to help customers in buying genuine products, instead of getting cheated with fake coloured crystals.

"We (commerce ministry) are in discussion with consumer affairs ministry to make hallmarking of gems and precious stones compulsory. The policy will be in place by year-end (December)," a senior government official told Moneycontrol.

Apart from providing quality products to local customers and prevent counterfeits being passed off as genuine gems, the move will boost exports and India's credibility in the overseas market will also improve, the official said.

A hallmark is a certification, indicating a proportionate content of the precious metal in the final item, as per the Indian standard. Such articles are generally sold in certified sales outlets. Obtaining a hallmark stamp is currently in practice for gold and silver jewellery.

However, mandatory hallmarking of coloured stones would require amendment in the Bureau of India Standard (BIS) Act as currently it is voluntary, the official said, adding that the trade ministry is pushing consumer affairs department to make the necessary changes in the law.

“The process of hallmark gives satisfaction to the buyers as they are assured of the quality.It provides better unit realisation for the seller also. I think it's a win-win situation for both the sides. The consumer gets the product which he wants and the supplier gets a better price,” Ajay Sahai, Director General of a top traders’ body Federation of Indian Exports Organisation said.

Gems and jewellery exports in May grew 8 percent on-year to USD 3.46 billion. Exports during April-May rose 11 percent on year at USD 6.78 billion. In 2016-17, outward shipments rose 9 percent on year to USD 35.55 billion.