Jalgaon: Import Duty Hike Deals Major Blow To Gold Purchases, Customer Footfall Drops
· Free Press Journal
Jalgaon: The impact of the Central Government’s decision to increase import duties on gold and silver by up to 15 per cent became clearly visible in Jalgaon’s bullion market on Thursday, as customer footfall at jewellery shops dropped sharply.
Gold and silver prices had already been witnessing a steady rise in recent weeks. Earlier, Prime Minister Narendra Modi had appealed to citizens to avoid purchasing gold for at least one year, but that appeal had not significantly affected buying trends. However, traders said the latest import duty hike has had an immediate and noticeable impact on the bullion market.
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Following the increase in import duties implemented on Wednesday, gold prices reportedly surged by nearly ₹9,000, while silver prices jumped by around ₹23,000. In Jalgaon, popularly known as the “City of Gold,” the price of gold reached ₹1,66,242 per tola, while silver prices climbed to ₹3,01,790.
Nashik Gets Major Boost As State Cabinet Approves Three Key DecisionsThe sharp rise in prices dealt a major setback to the city’s bullion trade. Several prominent jewellery stores witnessed noticeably lower customer turnout compared to usual days. Many buyers have temporarily postponed their gold purchases due to the steep increase in rates.
The timing of the price rise has further added to the concerns of consumers, as the wedding season is currently underway. Despite the soaring prices, several families said they would still be forced to buy at least a small quantity of gold because of upcoming weddings and traditional customs.
Adding to the pressure is the upcoming Marathi month of Adhik Maas, which begins on May 17. During this period, there is a long-standing tradition of inviting sons-in-law home and presenting them with gold or silver gifts. However, the sharp rise in bullion prices has left many families worried about how they will continue these customs amid rising expenses.
Consumers and traders alike said the soaring prices of gold and silver have created uncertainty in the market and have affected even those trying to maintain age-old cultural traditions.