In a landmark move for the state, Kerala has become the first in the country to introduce a uniform gold rate based on the bank rate.?
Leading Kerala-based jewellers such as Malabar Gold & Diamonds, Joyalukkas and Kalyan Jewellers, have decided to offer a uniform gold rate to consumers.
Gold rate varies from state to state depending on the rate fixed by the gold associations in the respective states. However, jewellers often charge different gold rates within the same states. "We are offering a uniform gold rate across all our showrooms in the country," said Joy Alukkas, chairman, Joyalukkas Group, as per ET.
The decision to offer a uniform gold rate was taken during discussions held earlier this month with the All Kerala Gold & Silver Merchants Associations, which sets the rate of gold in the state. "Kerala has become the first state in the country to launch a uniform gold rate," said Surendra Mehta, national secretary, India Bullion & Jewellers Association.?
"Being a top gold consuming state in the country, Kerala can set the stage for a countrywide roll-out of uniform gold price," said MP Ahammed, chairman, Malabar Group, as per the report. "Gold rate should be uniform across the country based on the bank rate. However, in most states, gold is priced at ?150-300 per gram extra over the bank rate. In Kerala, gold used to be sold at different prices on a particular day. Uniform gold price based on bank rate offers an opportunity to the consumers to purchase gold at a reasonable and transparent price."
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As per PTI,?commenting on the decision, Mr. MP Ahammed, Chairman, Malabar Group said, "We are extremely happy to be a part of this momentous occasion. We would like to thank all members of the jewellery trade in Kerala for coming together and launching a standardized gold rate across the state to safeguard the interest of the consumers and bring in price transparency to the trade. At Malabar Gold and Diamonds, we have shown the way by launching uniform gold price across all our stores in the country with our 'One India One Gold Rate' policy."
He also demanded that the selling price of gold?be unified everywhere in the country. The gold rate should be uniform across the country based on bank rate. However, in most states, gold is priced Rs.150-300 per gram extra over the bank rate. In Kerala, gold used to be sold at different prices on a particular day.?
Uniform gold price based on bank rate can offer an opportunity to the consumers to purchase gold at a reasonable and transparent price. According to Mr. Ahammed, there should be a system to determine the price of gold based on the bank rate on a specific day in the country. Bank rate on gold, GST and other taxes including import duty are the same across India.?
For example, if we take this month¡¯s earlier rate as on November 4, 2022, the bank spot rate of 916 (22 carat) gold was Rs. 1,640 per ounce, the bank premium was Rs. 3.50, the import duty was Rs. 6,67,467 per kg and the bank cost per gram of gold was Rs. 5,008. Adding all these, the bank rate of November 4, 2022, amounts to Rs. 4610 per gram of 916 gold. Thanks to price standardization, jewellers in Kerala now charge the same price as the bank rate for gold, as per the report.
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