Jewellery manufacturers in Coimbatore have urged the Tamil Nadu government to give priority to micro, small and medium enterprises (MSMEs) in future government gold jewellery orders, following concerns over the eligibility criteria and pricing of a recent tender.

The tender covers 4.41 lakh gold rings of one gram each under a government scheme, involving approximately 441 kg of gold. Bidders were required to quote for making charges, hallmarking, packing, transportation and insurance.

Local manufacturers said they were unable to match the winning bid, which was quoted at one paisa per ring. Other bids were reportedly in the range of ?450 to ?700 per piece for the specified services.

Jewellery units also raised concerns over the tender's requirement of a minimum annual turnover of ?250 crore and a ?3 crore minimum deposit. They said such criteria restrict the participation of smaller manufacturing units.

Coimbatore has around 40,000 micro gold jewellery units, with each unit employing at least four workers, according to industry representatives.

Manufacturers said government procurement could provide business opportunities for the local MSME manufacturing base but argued that tender conditions should allow smaller units to participate directly.

Industry members also expressed concerns over payment timelines and the complexity of government procurement procedures.

They said the winning suppliers could potentially outsource part of the manufacturing requirement to local units, particularly as the ring design does not require specialised machinery.

The manufacturers have urged the Tamil Nadu government to consider MSME participation and eligibility while framing future gold jewellery procurement tenders.