In a major reform aimed at enhancing transparency in the gold trade, the Kerala government is set to standardize gold prices across the state. Currently, gold rates fluctuate based on a trader’s affiliation with different trade organizations, creating disparities and confusion among consumers. The initiative seeks to unify these prices, ensuring a consistent rate for buyers across Kerala.
Dr. Govindan, addressing the issue, pointed out that gold is presently sold at three different prices depending on trade group affiliations. He emphasized that efforts are underway to implement standardized pricing nationwide, which would particularly benefit small and medium-scale traders.
However, the move has met resistance from certain trader groups. The All Kerala Gold and Silver Merchants Association (AKGSMA) recently expelled four traders for opposing price standardization. The association, which reunited after a decade-long split, warned that non-compliant traders should refrain from using its name and logo, with legal action threatened against violators.
The lack of price uniformity has also led to confusion among consumers, as different trader groups have been announcing varying gold prices on the same day. For instance, in a recent instance, one group set the price at ₹63,440 per sovereign (8 grams), while another quoted ₹63,520, creating an ₹80 difference per sovereign.
Despite opposition, the government remains firm on its stance, arguing that standardizing gold prices will bring clarity, fairness, and stability to Kerala’s gold market, ultimately benefiting consumers and traders alike.
