The jewellery industry in India is set to undergo significant changes with the introduction of revised wastage norms and updated Standard Input Output Norms (SIONs) by the Directorate General of Foreign Trade (DGFT). These new guidelines, which will take effect on January 1, 2025, aim to bring manufacturing standards more in line with current industry practices. The goal is to enhance material efficiency while ensuring that the traditional techniques used in jewellery making are still accommodated.
Initial Announcement and Industry Response
On May 27, 2024, the DGFT published Public Notice No. 05/2024-25, outlining a reduction in wastage norms across all jewellery categories. The revision was a bold move, aimed at cutting down on the material waste generated during the manufacturing process. However, the announcement raised concerns within the industry about the feasibility of such reductions, prompting an immediate response from the Gem & Jewellery Export Promotion Council (GJEPC).
Recognizing the potential challenges posed by the new norms, GJEPC organized a meeting with DGFT officials to address these concerns. Following the meeting, the DGFT decided to temporarily halt the implementation of the new norms, providing the industry with an opportunity to gather supporting data and discuss the issue further.
Industry Input and Data Collection
To assess the impact of the proposed changes, GJEPC conducted an extensive survey involving 160 jewellery exporters and manufacturers across India. The findings from the survey revealed that the current process loss norms, as defined in the Handbook of Procedures 2023, more accurately reflected the realities of jewellery production.
Based on this data, the jewellery sector presented two primary requests to the DGFT:
Realistic Wastage Norms: The industry asked for wastage norms that more accurately represent the material loss typically incurred during the manufacturing process. Jewellery production often involves intricate work, such as engraving, setting stones, and other time-consuming tasks, which can result in varying amounts of waste.
Adequate Transition Period: Manufacturers expressed the need for a transition period to adjust to the revised norms, particularly given the complexities involved in retooling processes and adopting new guidelines.
Revised Norms and Industry Stakeholder Discussions
After reviewing the survey data and engaging in discussions with stakeholders, the DGFT approved adjustments to the initial wastage norms. The revised guidelines will take effect on January 1, 2025, giving the industry time to adapt to the changes. For the remainder of 2024, manufacturers will continue to operate under the previous norms, allowing a transition period to implement the updated standards without undue disruption to production.
The updated norms are expected to be more practical, reflecting the true scope of material waste incurred during jewellery manufacturing. The new rules will allow manufacturers to use materials more efficiently while accommodating the realities of the craftsmanship that characterizes the industry.
Standard Input Output Norms (SIONs) Revised
In addition to the adjustments to wastage norms, the DGFT has also revised the Standard Input Output Norms (SIONs) for the jewellery industry. SIONs dictate the amount of raw material required to produce specific quantities of finished jewellery. The revisions aim to enhance the utilization of metals, particularly in designs that rely heavily on intricate, time-intensive techniques.
The updated SIONs are designed to benefit artisans, many of whom depend on traditional methods of production. These artisans often face challenges in meeting rigid industrial standards due to the complex nature of their craft. The new SIONs will allow more flexibility in raw material usage, ensuring that jewellery makers can continue to produce high-quality items without facing unnecessary restrictions on material input.
Encouragement for Industry Preparation
The GJEPC has been proactive in encouraging its members to familiarize themselves with the revised wastage norms and SIONs in preparation for the changes. The Council has urged jewellery manufacturers to begin preparing for the implementation of the new standards, providing guidance on how best to navigate the transition.
In a statement, the GJEPC reaffirmed its commitment to supporting the growth and development of the gem and jewellery sector. The Council emphasized the importance of continued collaboration with the government to ensure that policies are not only efficient but also aligned with the unique requirements of the industry.
Looking Ahead: The Impact of the New Norms
The introduction of revised wastage norms and SIONs is expected to have a significant impact on the jewellery industry. The aim of these revisions is twofold: to enhance material efficiency and to allow for a more flexible manufacturing process that can accommodate the intricate artistry inherent in jewellery making. By striking a balance between efficiency and craftsmanship, the new norms are intended to improve the overall sustainability and competitiveness of the industry.
One of the key challenges faced by the jewellery sector has been the tension between traditional manufacturing practices and modern standards. Many jewellery manufacturers, particularly those working with intricate designs or gemstones, have struggled to meet rigid industrial standards without compromising on the quality of their work. The new guidelines take into account these unique challenges, offering more realistic wastage norms that reflect the true nature of jewellery production.
At the same time, the updated SIONs will provide manufacturers with more leeway in terms of raw material usage, ensuring that artisans can continue to produce high-quality jewellery without being restricted by overly stringent regulations. This change is likely to benefit smaller manufacturers and artisans who rely on traditional methods, as well as larger producers who are working to streamline their operations.
Conclusion
The revised wastage norms and SIONs announced by the DGFT represent a significant shift in the jewellery industry’s approach to material use and production standards. The changes, which will come into effect in January 2025, offer a more balanced and realistic framework for jewellery manufacturers, addressing both the need for efficiency and the unique challenges posed by traditional production techniques.
The jewellery industry now faces a critical period of adjustment, but with adequate preparation and a clear understanding of the new regulations, manufacturers will be better positioned to meet the demands of both the domestic and international markets. As the sector adapts to these changes, the ultimate goal will be to ensure that the Indian jewellery industry remains competitive, sustainable, and true to its rich tradition of craftsmanship.
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