As compared to the sales of gold and silver jewelry last year Karwa Chauth, this festival saw a jump of around 36 per cent.
Due to covid, the business had taken a toll, but this news has brought the much-needed sigh of relief to the industry.
The data by the traders’ body Confederation of All India Traders (CAIT) and All India Jewellers and Goldsmith Federation (AIJGF), the sales have improved after the two years of business slump due to Covid.
36% Festive Sales Jump
In a joint statement, the two representative bodies of traders and retailers said the sale of gold and silver jewellry across the country on Thursday was around Rs 3,000 crore vis-a-vis around Rs 2,200 crore a year ago.
The two of the associations noted that in the national capital, the price of 24-carat gold was Rs 52,000 and Rs 48,000 for 22-carat gold per 10 grams, while silver was Rs 59,000 per kg.
CAIT’s Secretary General Praveen Khandelwal and AIJGF National President Pankaj Arora said that “October and November are considered very auspicious for the traders of gold and silver across the country from the business point of view. After Karwa Chauth, other festivals including Pushya Nakshatra, Dhanteras, Laxmi Pujan, Deepawali, Bhaiya Dooj, Chhath Puja and Tulsi Vivah are also celebrated with much fanfare”.
The two trade leaders also revealed that there was also a large stock of lightweight jewellery purchased by the masses while fashion jewellery and traditional gold and silver jewellery also did huge business.
The Increased Import Duty on Gold
Notably, in the June month this year, the government increased the import duty on gold by 5 per cent to 12.5 per cent from 7.5 per cent.
This change, says credit rating agency Crisil, will result in flat revenue growth for gold jewellery retailers this fiscal, compared with the glittering run last fiscal.
Due to this hike, the increase will then be passed on to the customers and hence the demand will be curtailed, and it will also wean away discretionary buyers.
The agency said that “After the pandemic-led disruptions abated in the first quarter of last fiscal, pent-up demand and an import duty cut of 5 per cent effected in February 2021 had triggered a sharp rebound in sales, which continued into the first quarter this fiscal”.
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