Big Changes Coming for the Jewellery Industry: New Wastage Norms Effective January 2025

NEW DELHI (India CSR): The Directorate General of Foreign Trade (DGFT) has announced revised wastage norms and Standard Input Output Norms (SIONs) for the jewellery industry. These changes, effective from January 1, 2025, aim to align manufacturing standards with industry practices, ensuring efficient use of materials while accommodating practical workflow needs.

New Norms and Industry Input

On May 27, 2024, DGFT initially issued Public Notice No. 05/2024-25, significantly reducing wastage norms across all jewellery categories. Recognizing the potential impact of this reduction, the Gem & Jewellery Export Promotion Council (GJEPC) immediately organized a meeting with DGFT officials, requesting a review. This led to a temporary hold on the new norms while the industry gathered supporting data.

Data Collection and Industry Requests

GJEPC conducted a comprehensive survey, gathering data from 160 jewellery exporters and manufacturers. The findings were consistent with the existing process loss norms outlined in the Handbook of Procedures 2023. Based on this research, the industry made two key requests:

1. Set realistic wastage norms that reflect the jewellery manufacturing process.
2. Provide a sufficient transition period to adapt to the new norms.

Adjustments Approved After Stakeholder Discussions

Following GJEPC’s survey and subsequent discussions, DGFT approved adjustments to the original norms. The revised wastage norms will take effect from January 1, 2025, allowing the industry a transition period to comply. Until December 31, 2024, the prior norms will remain in place, giving manufacturers time to adapt.

Revised Standard Input Output Norms (SIONs)

The updated regulations also include changes to SIONs, which dictate the quantity of raw materials permitted for specific quantities of finished jewellery. These revisions are designed to enhance metal utilization while considering the nuances of traditional jewellery production, benefiting artisans who rely on intricate manufacturing techniques.

Industry Encouragement and Preparation

GJEPC has encouraged members to review the revised norms and begin preparing for the upcoming changes. The Council reaffirmed its commitment to the gem and jewellery sector, emphasizing continued collaboration with the government to create policies beneficial to the industry.

The updated wastage norms and SIONs represent a balanced approach, supporting both efficiency and the unique needs of the jewellery manufacturing process.