February 21: Gold and silver businessmen have complained that it is difficult to meet the needs of consumers because there is not enough gold in the market.

In a joint press conference organized by the Federation of Nepal Gold and Silver Dealers Association (FENEGOSIDA), Federation of Nepal Gold Silver Gem and Jewellery Association (FNGSGJA) and Federation of Handicraft Association of Nepal (FHAN) on Monday, Manik Ratna Shakya, the president of FENEGOSIDA, said that it is not possible to meet the demands of the customers due to the imposition of a quota system on gold import.

Because of the quota system in gold import, the businessmen are suffering as there is not enough supply as per the demand. They accuse the state of not importing gold as per the demand and treating the jewelers like 'criminals'. The government set a daily import quota of 10 kg for gold to preserve the foreign exchange reserves. However, Shakya says that this quantity is less than the market demand.

According to Shakya, 40 kg of gold is consumed during the peak season, while up to 15 kg of gold is consumed during off-season on a daily basis in the Nepali market. Due to the quota system implemented in the gold imports, the businessmen in this sector are highly discouraged as they are not able to run their business efficiently.

The umbrella organizations of businessmen issued a statement and said that the quota system of gold import has created a situation where the constitutional right to buy and sell has been conpromised. In the statement, they demanded to make necessary policies, rules and laws for the import and export of gold and silver jewelry.

The statement reads, “In relation to the global demand for traditional Nepali jewelry, there is a great need for policies, rules and laws for this profession to export jewelry and also to manage the local market.” The businessmen have also demanded that laws and regulations be made and implemented soon for the gold and silver business.