Volatile silver prices hit anklet manufacturers and workers in Salem
Volatility in silver bullion prices has severely impacted the anklet manufacturing industry in Salem, leading to job losses and a shift in labor. Manufacturers report declining demand and changing consumer trends, forcing many workers to seek alternative employment.
Why it matters
This highlights the vulnerability of small-scale manufacturing clusters to global commodity price fluctuations and shifting market preferences.
The volatility in silver bullion prices has significantly impacted silver anklet manufacturers and workers in Salem district, to the extent that many workers have moved to other jobs in the last six months.
Over 1,000 silver anklet manufacturing units functioning in Shevapet, Ponnammapet, Kondalampatti, Maniyanoor, Nethimedu, Fort, Nangavalli, Sivathapuram, Vedukathampatti, Panankadu, Solampallam, Jahir Ammapalayam, and Sooramangalam provide direct and indirect employment to more than 50,000 workers.
The price of silver bullion on January 1 this year stood at ₹3.18 lakh a kg and rose to ₹4.05 lakh by the last week of the same month. It dropped to ₹ 2.30 lakh per kg in June and in the first week of July it increased to ₹2.60 lakh per kg. Currently, one kg of silver bullion stands at ₹ 2.38 lakh.
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