Jewellers see 10% growth in sales on Akshaya Tritiya

WGC, MD - India, Somasundaram PR said the buying behaviour of consumers is returning to normalcy following jewellers resuming business after a month long protest over excise duty

After the bullion market remained lull for months, jewellers on the occasion of Akshaya Tritiya today are hopeful of a 10% rise in sales.

"We are getting positive reports from across the country, and the footfalls are also good...Southern region is extremely good, while in the north it seems to be similar as last year. Overall we are expecting about 5-10% growth this Akshaya Tritiya," All India Gems and Jewellery Trade Federation Chairman Sreedhar GV told PTI.

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Western region markets are also doing good, he added.

"We are also noticing that the off-take on coins are much less compared to last year. This year the preference is more for the wedding jewellery, as the marriage season is still on. Consumers are also going for light weight jewellery than coins," he said.

World Gold Council Managing Director, India, Somasundaram PR said the buying behaviour of consumers is returning to normalcy following jewellers resuming business after a month long protest over the excise duty.

"Indians mark Akshaya Tritiya as an occasion to purchase gold and the initial feedback from the trade is an increase in demand, where both wedding jewellery as well as investment products, like coins and bars, have done well."

However, in poll-bound Tamil Nadu, jewellers are worried of a possible 25-30% drop in business on as the model code of conduct is in force and customers can not carry large amount of cash with them.

"Since there is election here, the model code of conduct prevents carrying large amount of cash. Compared to last year, there is less amount of footfalls and we expect at least 25-30% drop in business," Madras Jewellery And Diamond Merchants Association President, Jayanthilal Challani said.

Assembly polls in Tamil Nadu and Puducherry will be held on May 16.

"It is a traditional belief that jewellery bought on Akshaya Tritiya day is more auspicious and jewellers are also offering discounts to boost sales... But still the response is lukewarm," he said.

The jewellers had gone on an indefinite strike in a protest against Centre's move to levy 1% excise duty on purchase of gold jewellery. They withdrew the strike in March following an assurance from the government that it will look into the matter.