Precious metal manufacturers seek ban

Chennai, Apr 30: The Chennai Silver Articles Manufacturers Association has appealed to the Centre to ban or regulate functioning of the government-approved Multi Commodity Exchanges (MCX) all over the country.

The MCX were 'illegally' interfering in the country's silver and gold trade, affecting the interests of the manufacturers and employees engaged in the silver article manufacturing, Mr V Ravi and Mr Nidhyanandham, President and Treasurer of the Association told newsmen here yesterday.

They claimed that MCX operators were creating artificial demand for gold and silver by conducting 'on-line' trade.

They said these two metals were brought under commodity category and the online trade was done by the MCX operators, who could hike the prices of these precious metals whenever they want by creating an artificial demand. It was highly condemnable, they added.

They also urged the government to fix the price of the gold and silver to avoid private interference.

''Anyone could buy and stock any quantity of gold online paying only five per cent of cost. So people started stocking the gold and silver and those who really wanted to buy the materials were unable to get them'', they said and claimed that this had created an artificial demand for these previous metals, which ultimately affected the goldsmiths and silverware manufacturers.

Mr R Ravi secretary of the association said in Chennai city alone there were about 2500 silver article manufacturers and over 10,000 families were dependant on it.

Several representations have been sent to the Union Government in this regard seeking a ban or regulation of the MCX online trade. But till date, the government had not responded positively, he claimed.

He said the association was consulting the trade-related associations to call for a state-wide bandh to draw the Union Government's attention in this regard.

UNI