Sales at several city jewellery stores has gone down by 20-30% this month
The price of gold has been on the decline over the past ten days but this has had little impact on sales in jewellery showrooms across the city.
On Tuesday, one gram of 22-carat gold was priced at Rs. 2,835, nearly Rs. 40 less than the price on March 1.
Jewellers in the city said the cost of the precious metal is dipping because of fluctuations in international gold prices.
But this is not attracting more customers to jewellery stores.
Usually, the sale of gold jewellery drops in the summer months, said traders. However, this year, several other reasons too have resulted in the decreased demand.
N. Ananthapadmanabhan, regional chairman, All India Gem and Jewellery Trade Federation, said the sales in many showrooms has gone down by 20-30 per cent this month.
“As it is exam season and the last month of the financial year, several customers refrain from buying jewellery. Moreover, implementation of the election code of conduct has deterred many from carrying large sums of money to jewellery stores,” he said.
With election authorities seizing unaccounted cash from across the State, the supply from wholesalers has also been affected.
L.K.S. Syed Ahmed, chief advisor, Tamil Nadu Jewellers Federation, said though some traders have vouchers and bills, they avoid travelling with cash due to fear of being apprehended.
The All India Gem and Jewellery Trade Federation will meet this weekend to discuss the problems faced by traders carrying large sums of money, and will take up the issue with the authorities concerned.
Jewellers expect dull sales the rest of the month and said sales would pick up, most likely, only in April during Akshaya Tritiya and Tamil New Year.