Kolkata: Malabar Group Chairman MP Ahammad has cautioned that certain emerging practices in gold price determination in India are deviating from long-established norms and risk undermining the credibility of the country’s gold trade.
Highlighting the fundamentals of gold pricing, Ahammad said that prices are determined by three key factors—international gold prices, the exchange rate of the Indian rupee against the US dollar, and import duty. While customs duty remains fixed for a defined period, fluctuations in global prices and currency movements make daily price revisions necessary.
Traditionally, gold prices in India are fixed through a transparent and widely accepted mechanism by trade associations and published before 9:30 am each day. Once announced, prices for the day are revised only under exceptional circumstances, such as extreme market volatility.
However, Ahammad expressed concern that in certain cases, a section of traders has been increasing gold prices arbitrarily, bypassing the established pricing mechanism and without offering clear justification to consumers. He warned that such practices could erode trust in the industry and create uncertainty among consumers, investors, and other stakeholders.
“Any deviation from standard and transparent pricing systems risks damaging the credibility that the Indian gold trade has built over decades,” he said, urging all stakeholders to act responsibly and uphold the integrity of the sector.
Reiterating Malabar Gold & Diamonds’ commitment to ethical business practices, Ahammad stated that consumer interest remains the company’s foremost priority and that transparency and fairness must guide all business decisions.
He also highlighted Malabar Gold & Diamonds’ ‘One India One Gold Rate’ initiative, which was introduced to eliminate price disparities across states. Since tax rates are uniform nationwide and gold prices are linked to international benchmarks, he noted that gold should ideally be sold at a uniform price across the country.
