The jewellers in other states are too expected to follow suit, said industry analysts.
SEATTLE (Scrap Monster): The gold rate across various states in the country may soon become uniform. The first step towards the concept of ‘One India One Gold Rate’ was recently announced by leading gold retailers in the South Indian state of Kerala. The jewellers in other states are too expected to follow suit, said industry analysts.
Currently, each state has their own pricing mechanisms to arrive at the final gold rate by considering international gold rate coupled with customs duty and taxes applicable to it. This makes the gold rate different in each state.
Three leading gold jewellery chains- Malabar Gold and Diamonds, Kalyan Jewellers and Joyalukkas have decided to use the bank quoted gold rates as the standard rate, which in turn will be applicable to all their stores spread across the country. The standardization of gold rate promotes transparency and makes it more convenient for customers. Also, bank rates are cheaper than market rates by up to INR 150.
Malabar Gold and Diamonds had introduced uniform gold rate across its stores almost two years back, thus forcing other jewellers to adopt price uniformity in order to remain competitive in the market.
Earlier, the World Gold Council (WGC) had proposed setting up of a Spot Gold Exchange to bring in more transparency in gold pricing.
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