NEW DELHI (Reuters) - India has deferred implementation of a new law on hallmarking of gold jewellery to certify their purity after trade concerns that it would disrupt the world's largest gold market.

"It has been deferred. We are not implementing it from Jan. 1," Consumer Affairs Secretary Y.S. Bhave told Reuters on Friday.

"The gold jewellery association wanted to have some discussion. We will hold a meeting with them in the next week or so," he added.

Traders said loopholes in the law meant that either their business could slow or be disrupted in a market that accounts for 30 percent of world gold consumption.

"There will be chaos and consumers will slow purchases as the availability will fall," said Rajiv Popley, director of Popley & Sons, a Mumbai-based jewellery chain.

Jewellery accounts for 80 percent of Indian sales, much of it handmade and fashioned in small workshops, often using mouth blowpipes and candle or oil flames.

Government officials say traditional handcrafted pieces, with their many joints and alloys used for soldering, leave room for dubious claims on caratage.

Bhave said that although the law had been deferred for the time being, the trade had assured retailers were paying closer attention to purity to ensure customers got what they had been promised. Continued...
http://in.reuters.com/article/topNews/idINIndia-31250320080104