Gold prices in Kerala have seen a big drop today. Traders are protesting the recent hike in import duties, warning that it will only lead to more smuggling. Right now, one gram of gold costs ₹14,675, and a pavan costs ₹1,17,400.
Gold prices in the state have fallen again. From yesterday's rate, the price for one gram of 22-carat gold has dropped by ₹205. This brings the current price of one gram of gold to ₹14,675. A pavan of gold now costs ₹1,17,400. This drop comes after prices skyrocketed by a massive ₹10,200 on May 13, right after the government increased the import duty on gold. The highest price this month was a staggering ₹1,23,120. Since then, the rates have been swinging up and down.
Meanwhile, the Kerala Gold and Silver Merchants Association (KGSMA) has come out strongly against the central government's decision to increase the import duty on gold. They say hiking the duty from 6% to 15% won't reduce imports but will actually make smuggling a bigger problem. KGSMA's State General Secretary Adv. Abdul Nasar, President K. Surendran, and Treasurer Krishnadas C.V. pointed out that when the duty was 15% before, India imported 1000 tonnes of gold. But with a 6% duty, imports were below 800 tonnes.
The association explained that the 9% hike in import duty has pushed up local gold prices by ₹10,200 per pavan. They claim that smuggling one kilogram of gold can now fetch a profit of over ₹20 lakh. "If you add the 3% GST that smugglers also evade, the total profit for them could be as high as ₹24 lakh," they added.
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Prime Minister's Appeal
The government raised the duties on gold and silver to control imports. This move came right after Prime Minister Narendra Modi urged people to stop buying gold for a year. The goal is to protect the country's foreign exchange reserves and strengthen the rupee. A large part of India's gold consumption is met through imports. Last Sunday, PM Modi had asked the public to avoid buying gold jewellery for a year to help the economy, especially since people are increasingly buying gold as a safe investment.
This Month's Gold Prices at a Glance
May 1 - Morning ₹1,11,720 | Afternoon ₹1,10,280 | Evening ₹1,09,720
May 2 - ₹1,10,680
May 3 - ₹1,10,680
May 4 - Morning ₹1,10,680 | Afternoon ₹1,09,720
May 5 - ₹1,09,400 (Lowest price this month)
May 6 - Morning ₹1,10,960 | Afternoon ₹1,11,560
May 7 - Morning ₹1,11,800 | Afternoon ₹1,12,200
May 8 - ₹1,11,960
May 9 - ₹1,11,720
May 10 - ₹1,11,720
May 11 - Morning ₹1,11,560 | Evening ₹1,12,520
May 12 - ₹1,12,920
May 13 - Morning ₹1,23,220 (Highest price this month) | Afternoon ₹1,18,800
May 14 - ₹1,19,040
May 15 - ₹1,17,400
