The government has been supplying 15 kg of gold to jewellers ever day through different commercial banks.
At a workshop organized jointly in Kathmandu by Federation of Nepal Gold and Silver Dealers' Associations FENEGOSIDA, Federation of Nepal Gold Silver Gem and Jewelry Associations (FNGSGJ) and Federation of Handicraft Association of Nepal (FHAN), gold dealers said that government should increase gold import quota to 40 kg per day during peak season (May-September) and at least 25 kg per day during other months.
"The existing quota is insufficient to meet even half of the demand," Mani Ratna Shakya, president of FENEGOSIDA said, adding, "By not increasing gold import quota, the government itself is promoting smuggling."
Commenting on the absence of Nepal Rastra Bank officials at the workshop, Shakya said, "The absence of officials of monetary regulator body shows the government is reluctant to address our demands."
Speaking at the workshop, gold dealers urged the government to allow them import gold by ending the monopoly of banks. "As the constitution states that government would control syndicate on consumer goods and services, government should allow us to import gold," Ramesh Maharjan, president of FNGSGJ, said. "Import restriction and monopoly of banks in gold imports have created unhealthy competition in the market."
Stating that the jewelry industry is contributing Rs 6 billion to government coffers every year, Maharjan said that the government should work with dealers and help them to promote Nepali jewelries in domestic and international market.
Similarly, dealers also said that the inability of commercial banks to maintain uniformity in price of gold and different procedural hassles has been discouraging jewellers.
Speaking at the program, Sarbendra Khanal, Senior Superintendent of Police of Metropolitan Police Crime Division, said their effort to control gold smuggling was not becoming effective due to lack of clear laws and policies.
Shambhu Koirala, director general of Department of Commerce and Supply Management (DoCSM), requested jewellers to put their demands through the department. "We will take your demands to the concerned government bodies including the central bank," he added.
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