Kerala Gold Jewellery Sector Estimates Onam Sales to Exceed ₹10,000 Crore Amid High Prices

Kerala's gold jewellery sector is anticipating strong sales during the upcoming Onam season, traditionally one of the most significant business periods for the state's retail market. Despite historically high gold prices, industry associations project that sales turnover will reach new highs this year.

According to estimates from the Kerala Gold and Silver Merchants Association (KGSMA), gold jewellery sales during the 2026 Onam season could cross ₹10,000 crore in value. This projection marks an increase compared to the previous year's Onam season, which market reports estimated between ₹7,000 crore and ₹8,000 crore.

S. Abdul Nazar, General Secretary of KGSMA, stated that the expected growth in sales value is driven by several factors. These include a rise in the exchange of old gold for new jewellery, an increased consumer preference for lightweight and simpler designs, the arrival of non-resident Indians (NRIs) from abroad, and the convergence of the Onam and wedding seasons.

The association clarified that the ₹10,000 crore figure represents a market assessment rather than an official statistic, calculated on the basis of prevailing gold prices and consumer buying trends. The price of 22-carat gold stood at ₹14,600 per gram on Thursday.

Industry participants point out that higher sales value does not equate to increased physical consumption. Due to elevated gold prices, consumers are expected to purchase lower quantities of gold by weight compared to previous years.

The current market environment is also presenting operational challenges, particularly for small and medium-sized jewellers. KGSMA noted that rising gold prices, higher operating expenses, and increasing regulatory compliance costs are placing financial pressure on smaller traders, prompting the association to seek greater government support for the sector.

"The projection of ₹10,000 crore in sales for the Onam season highlights how rising commodity prices can drive up total turnover even when physical volume remains constrained. For retail businesses, this trend emphasizes the importance of adapting to consumer behavior by focusing on lightweight designs and alternative transaction models like old-gold exchanges. However, smaller players must carefully manage their working capital and compliance costs to navigate these high-price market conditions effectively." — Dr. Shishir Gupta, Founder & CEO, StartupLanes