30% more gold sold this Akshaya Tritiya

KOLKATA | MUMBAI: Gold sales during Akshaya Tritiya this year increased by 30.5% from a year ago, according to industry estimates, though consumers largely avoided cash transactions of over Rs 2 lakh to stay out of reach of the tax department.

In absolute terms, gold sales have likely touched 23.5 tonnes on April 28, 2017 compared with 18 tonnes on May 9 last year when Akshaya Tritiya was celebrated, jewellers and precious metals analysts said. Sales by value based on the price of 22 carat gold on April 28 (Rs 26,582 per 10 gm (ex-VAT)) touched Rs 6,113.4 crore compared with Rs 4,984.2 crore last time.

“I cannot comment on tonnage, but it's safe to say that this occasion sales are estimated as much as 30% more than last year's," said Chirag Sheth, research consultant with Metals Focus, data provider to World Gold Council. He, however, said the high differential in sales was in part because of the jewellers' strike last year.




The rule that consumers must give PAN details for jewellery purchases worth Rs 2 lakh and more capped large transactions, traders said, adding that digital transactions accounted for only 30-40% despite the government's push for wider adoption of this route.

“High transaction charge of 1.53% on cards is limiting their usage. We think that transaction charge should be done away with in case of debit cards,“ said Nitin Khandelwal, chairman, All-India Gem & Jewellery T rade Federation. “Even though sales had gone up, ticket size was less.Number of consumers on the other hand was more. Digital transactions were more than last year but not significant." Saurabh Gadgil, chair man of PNG Jewellers, said, “Mostly lightweight jewellery was bought using plastic money .“ Metals Focus' Sheth said the government is unlikely to reduce the 10% customs duty on gold. “Sales were buoyant and I think the govt would not tinker with import duty," he said.