Recently, the Indian government proposed new guidelines for the permissible wastage limits in the export of gold, silver, and platinum jewellery, seeking feedback from the trade and industry sectors. The Directorate General of Foreign Trade (DGFT) issued a communication inviting stakeholders to submit their inputs and comments within seven days to the norms committee.

The DGFT highlighted that these proposed revisions are based on industry visits to various units and locations across the country. The intent is to update the wastage norms to better align with current manufacturing practices and realities.

This development follows the government's earlier decision in May to tighten wastage norms, which sparked significant concern within the jewellery export industry. Many exporters expressed dissatisfaction, alleging that they were not consulted before the stricter norms were implemented. In response to the backlash, the DGFT temporarily suspended the tightened norms, first extending the suspension until July 31 and later until September 15, to allow for further discussions.

The wastage norms in question fall under the Standard Input-Output Norms (SION), which determine the quantity of input materials required to produce a unit of output for export. SION is applicable across various industries, including electronics, engineering, chemicals, food products, handicrafts, plastics, and leather.

The jewellery industry is now closely watching how these proposed revisions will impact their operations, with many hoping for a balanced approach that takes into account both efficiency and practicality in production processes.