Now Reading: Kerala gold trade expects record Onam sales of Rs 10,000 crore
-
01
Kerala gold trade expects record Onam sales of Rs 10,000 crore
The Kerala Gold and Silver Merchants Association (KGSMA) has estimated that gold jewellery sales in Kerala during the 2026 Onam season could cross Rs 10,000 crore in value, up from an estimated…
The Kerala Gold and Silver Merchants Association (KGSMA) has estimated that gold jewellery sales in Kerala during the 2026 Onam season could cross Rs 10,000 crore in value, up from an estimated Rs 7,000-8,000 crore last year. The association attributes the expected growth to increased exchange of old gold, rising demand for lightweight designs, the overlap of Onam and wedding seasons, and the arrival of NRIs.
However, with 22-carat gold priced at Rs 14,600 per gram on Thursday, KGSMA warned that consumers are likely to buy lower quantities by weight, meaning higher sales turnover does not guarantee a rise in actual gold consumption. The association also noted that small and medium jewellers face added pressure from rising gold prices, operating expenses and regulatory compliance costs, and has urged the government to extend greater support to the trade.
Indian Opinion Analysis
Onam accounts for a significant chunk of Kerala's annual gold retail, with the season often setting the tone for the rest of the year. The shift to lightweight and exchange-driven purchases suggests a structural change in consumer behaviour as prices stay high. Small jewellers, already squeezed by compliance costs under hallmarking rules, may struggle to compete with larger chains that can offer better exchange rates. The key number to watch after Onam will be the actual weight of gold sold, not just the rupee turnover.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
