Operators had to slash their margins by more than 50 per cent in order to whip up business and compete with export rivals such as India and China, he said.

In the first four months, the gems and jewellery industry managed to eke out an increase of 0.5 per cent in exports to $1.3 billion from the same period last year, according to the Commerce Ministry. The biggest buyers were the United States and European Union.

Most operators were worried about the US decision due next month on whether to remove Thailand from its generalised system of preferences (GSP).

They adjusted by exploring and penetrating new markets such as Africa, Eastern Europe and the Middle East.

They are also seeking trading partners and brokers in those countries to export their products indirectly to the US, Amnart added.

Thailand's GSP exports to the US were worth $4.25 billion last year, of which 16 per cent was gems and jewellery.

Amnart called for the government to cut duties on imported jewellery components, provide financial assistance and support advanced technologies in order to boost the competitiveness of small and medium enterprises in the industry.

FTI vice chairman Mangkorn Dhanasarnsilp said the federation would next month hold a business-matching day as a stage for trading raw materials and finished products among gem and jewellery operators.

It also plans to hold business-matching events abroad soon in a bid to help operators find trading partners and expand their international markets.

Chalida Ekvitthayavechnukul,

The Nation