The jewellery industry has come together to implement a ‘one nation, one rate’ (ONOR) policy for gold across States to bring in much-needed transparency in the yellow metal sales.
The Indian Jewellers and Bullion Association of India and All India Gem and Jewellery Domestic Council are in discussion with various stakeholders of the industry and a consensus is expected soon with a roll-out plan in September.
Gold is initially priced in US dollars. As India imports most of its gold requirement, the currency exchange rate and various duties further influence the gold price in India. If the US dollar strengthens against the rupee, domestic gold prices go up and vice versa.
Saiyam Mehra, Chairman, the All India Gem & Jewellery Domestic Council (GJC), said the initiative will create a more transparent and uniform pricing structure, reducing discrepancies and fostering a fair marketplace for all stakeholders. And thus, boost consumer confidence.
It will also enhance consumer confidence, as buyers will no longer face varied pricing across different regions. The Council is committed to advocating for this policy by collaborating with the industry to ensure its successful implementation, he said.
Fluctuating prices
Gold prices vary from State to State due to differences in logistical costs, differing demand and supply dynamics. These factors create disparities in pricing. A unified pricing policy will address these issues, ensuring consistency and fairness across the country.
Currently, the price of 24-carat gold in India is ₹73,339 for 10 gm (excluding GST/VAT) as per IBJA. In Delhi, the prices are higher at ₹74,170 for 24-carat gold and in Chennai, it costs ₹74,510.
The jewellery industry has been moving fast in adopting transparency measures including GST and implementing mandatory Hallmark Unique Identification Numbers.
Kumar Jain, national spokesperson, IBJA, said talks with various industry associations are currently going on and the response has been very positive.
If all goes well, it should be rolled out before this year-end at least by the leading jewellers, he said.
Despite volatile gold prices, he said the jewellery demand has been very strong as most consumers expect gold prices to touch ₹80,000 per 10 gm before Diwali.
Prithviraj Kothari, Managing Director, RiddiSiddhi Bullions, said a majority of major jewellers have agreed to adopt a “one nation one rate” policy for gold and it marks a significant step towards a more transparent and equitable gold market in the nation, he said.
An official announcement regarding this is anticipated during the September meeting, he added.
