Hallmarking of gold jewellery compulsory from '08

New Delhi, Mar 2: Hallmarking for all gold jewellery items will become compulsory from January 1, 2008, the Rajya Sabha was informed today.

Minister of State for Consumer Affairs, Food and Public Distribution Taslimuddin said in a written reply in the house that in order to facilitate implementation of compulsory hallmarking for all gold jewellery in a phased manner, the government has launched a scheme for setting up of Assaying/Hallmarking Centres with central assistance in 35 identified districts.

It will provide a one time financial assistance at the rate of 15 per cent of cost of machinery and equipment subject to a maximum of Rs 15 lakh per centre.

For the North East and special category states, the maximum limit for financial assistance has been enhanced to 30 per cent of cost of machinery and equipment subject to a maximum of Rs 30 lakh per centre.

In reply to another question on futures trading in essential commodities, the minister said that the main reasons for the recent rise in prices of essential commodities are shortfall in domestic supplies against demand and hardening of international prices.

In the context of discussion regarding whether and to what extent futures trading has contributed to price rise in agricultural commodities in recent times, he said the government has decided to set up an Expert Committee to go into this question in detail.

On the ban on futures trading in essential commodities, Mr Taslimuddin informed that the recommendations made by the Standing Committee are under examination. However, the Forward Markets Commission (FMC) has directed the three National Exchanges, namely Multi Commodity Exchange of India Ltd, National Commodity and Derivatives Exchanges Ltd and National Multi Commodity Exchange of India Ltd to delist all contracts of tur and urad and to close all outstanding positions in all tur and urad and, to close all outstanding positions in all tur and urad contracts at the closing price on January 1, 2007.

FMC has also stated that no further contract shall be launched without its prior approval, and permission already granted to launch contracts in urad and tur stand withdrawn.

Besides, FMC has on February 27, 2007 directed all the three National Exchanges that no new wheat and rice contracts be launched, the minister added.

UNI