The recent hike in silver prices has hit anklet manufacturing units here severely. Many units here have stopped manufacturing for the past ten days.
Silver jewellery manufacturing is one of the major industries in Salem and the district has been the major producer and supplier of silver anklets across the country and it is even exported to countries like Malaysia and Singapore. The recent rise in silver price has hit the industry severely as many have been forced to shut shops for the past ten days. Silversmiths here said that Onam orders from Kerala has also dropped due to floods and severe rain in the neighbouring State.
One of the silversmiths here said, “we haven’t done any manufacturing for the past ten days and most of the units have shut shops following the hike in silver prices. Usually we used to get Onam orders during this season, however, due to floods in the State we haven’t received much returns from Kerala. Traders there are now inclined towards clearing the existing stock.”
K.V.Chandrapal, president, Salem Silver Leg Chain Manufacturers’ Association said, “the industry is almost idle here. Per kg. of silver costs ₹48,000 on Monday. The price was about ₹52,000 a few days ago. This a business with just 2-3% profit and manufacturers wouldn’t be able to manage at such high costs. Introduction of GST has also hit the Industry severely. Only units who have stock of silver are manufacturing now and others aren’t ready to burn their hands at the moment.”
He added that manufacturers are now eyeing Deepavali for better sales and to recover from the current losses.