Keralam gold jewellery trade bets big on Onam sales

Kerala's gold jewellery market is placing its bets on successful Onam sales, with the state's jewellery industry considering the festival as one of its most crucial business seasons. The Kerala Gold and Silver Merchants Association (KGSMA) predicts that gold jewellery sales in Kerala during the 2026 Onam season could reach over ₹10,000 crore in value, citing various market reports.

Last year, sales during Onam were estimated at ₹7,000–₹8,000 crore. The expected growth is attributed to factors such as the exchange of old gold for new jewellery, rising demand for lightweight and simpler designs, the overlap of Onam and wedding seasons, and the arrival of NRIs from abroad.

However, with gold prices remaining at historically high levels, consumers may purchase lower quantities of gold by weight. Consequently, an increase in sales turnover does not necessarily mean a corresponding rise in actual gold consumption. The Onam season is also anticipated to present greater challenges for small and medium-sized jewellery traders.

Rising gold prices, escalating operating expenses, and higher regulatory compliance costs have intensified the pressure on smaller traders. The KGSMA has called on the government to provide additional support to the jewellery trade, emphasizing that the projected ₹10,000 crore figure is a market assessment based on current gold prices, the Onam-wedding season, and consumer trends. The price of 22-carat gold is currently at ₹14,600 per gram.