Kerala's gold jewellery sector is positioning for robust Onam sales, with the Kerala Gold and Silver Merchants Association (KGSMA) estimating gold jewellery sales could cross ₹10,000 crore during the 2026 Onam season. According to reports from The Hindu BusinessLine, this projection represents significant growth from the ₹7,000-8,000 crore estimated sales during last year's Onam season. The association emphasized that the festival remains one of the most important business seasons for Kerala's jewellery industry, with the sector pinning its hopes on robust festive demand and rising gold prices.
As reported by The Hindu BusinessLine, S. Abdul Nazar, General Secretary of KGSMA, identified several factors contributing to the expected growth. These include increased exchange of old gold for new jewellery, growing demand for lightweight and simpler designs, the overlap of Onam and wedding seasons, and the arrival of NRIs from abroad. However, Nazar noted that with gold prices remaining at historically high levels, consumers are likely to purchase lower quantities of gold by weight, suggesting that increased sales turnover may not necessarily indicate corresponding rises in actual gold consumption.
According to the report, the 22-carat gold price stood at ₹14,600 per gram on Thursday, reflecting the current market dynamics. KGSMA clarified that the ₹10,000 crore figure is not an official statistic but rather their market assessment based on prevailing gold prices, the Onam-wedding season overlap, and consumer trends. The association emphasized that while the market could witness record sales in terms of value this year, the quantity of gold consumed by weight may decline due to high prices.
As reported by The Hindu BusinessLine, the season is expected to pose greater challenges for small and medium-sized jewellers due to rising gold prices, increasing operating expenses, and higher regulatory compliance costs. KGSMA has urged the government to extend greater support to the jewellery trade to help smaller traders navigate these pressures. The association's projections reflect the industry's optimism about festive demand despite the challenging pricing environment and additional pressures from rising operational costs.
