Chennai, 27 October (H.S.) : Silver ‘kolusu’ (anklet) manufacturers in Salem, Tamil Nadu’s key hub for silver ornaments, are struggling under a severe economic strain as a massive surge in silver prices combines with an acute metal shortage.

The distress was particularly evident during the Deepavali festival season, typically the peak time for the industry, which saw business turn bleak for the estimated 1,500 units that employ nearly one lakh people in the region.

The primary reasons for the crisis are two-fold: an unprecedented rise in the cost of silver, and a notable shift in consumer behaviour. Silver prices, which stood at ₹1.05 lakh per kg in early June, skyrocketed to a record high of ₹2.07 lakh per kg by mid-October, though the prices have recently begun a steep decline. Adding to the challenge, manufacturers attribute the decline in orders to a change in people's mindset, who now increasingly view silver as an investment and prefer purchasing bars instead of ornaments.

Sree Anantharajan, president of the Silver Anklet Manufacturers Welfare Association, highlighted the direct impact of the shortage. “We didn't get the metal from wholesalers for at least 15 days due to a shortage, resulting in a production halt, he stated. He added that festival season orders plummeted to 40 per cent, and only 20 per cent could be fulfilled, utilizing pre-existing stock.

The lack of work has forced numerous silver smiths to seek employment as daily wagers to sustain their families. R Mahesh Kumar, a silversmith, confirmed the grim situation, noting that migrant workers who returned to North Indian states for the holidays are on an extended break due to the absence of work in Salem.

To revive the ailing industry, manufacturers have collectively urged the government to commence the operations of the Silver Anklet Multi-Purpose Centre. The facility, built on 1.20 acres at a cost of ₹25.29 crore and inaugurated by Chief Minister MK Stalin in March, is intended to bring various craftsmen under a single roof.

Manufacturers believe bringing the complex into immediate use and providing a necessary subsidy would effectively boost the business, generating work indirectly for an estimated 10,000 people.

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Hindusthan Samachar / Dr. R. B. Chaudhary