This year, the Dhanteras festival in Pune saw a 30% dip in gold jewellery sales, said city jewellers. Delayed rainfall damaging crops, effects of demonetisation and an increase in bullion price following roll out of the Goods and Services Tax (GST) has led to the overall fall in the demand for gold jewellery, according to jewellers.
According to jewellers, the introduction of GST at 3% on gold and 18% on making charges has led to a hike in gold jewellery price.
Fatehchand Ranka, director of Ranka jewellers and president of Pune Saraf Association said,“The GST regime and demonetisation have affected the sales this year as compared to last year. Jewellers have reported less sales even on the day of Dhanteras, on October 17, two days ahead of Diwali. Overall, there is a drop in the sale of gold jewellery by around 30% in Pune.”
Sunil Jain, manager of RML Karve road branch said, “The effect of demonetisation in association with 3% GST has also increased the prices of gold leading to a dip in demand this year.”
“In last three years, the sector has faced several difficulties due to various amendments in regulations. The KYC requirement for ₹50,000 purchase of jewellery had affected sales and restricted customers from buying jewellery.” said by Hemant Chavan, manager of PNG jewellers.
{{/usCountry}}“In last three years, the sector has faced several difficulties due to various amendments in regulations. The KYC requirement for ₹50,000 purchase of jewellery had affected sales and restricted customers from buying jewellery.” said by Hemant Chavan, manager of PNG jewellers.
{{/usCountry}}Gold is generally considered an important asset in India. But, if market is sluggish, then consumers hesitate to invest in gold. In such scenario, people prefer to keep cash in hand, said another jeweller.
Dhanteras is considered the most important day for purchasing gold. Most of the farmers use the sale proceeds of the newly harvested crop to buy jewellery.