For the first time since 2019, jewellers are hoping to cash in on the Akshaya Tritiya festival — considered auspi- cious for gold buying — to boost their sagging sales, given the absence of Covid-related curbs. However, elevated gold prices may still dampen their sales prospects, jewellers told FE.

Nevertheless, some of the established jewellers are expecting sales to rise in the range of 10-25% on Akshaya Tritiya on Tuesday from the pre-pandemic level (sales on the same day in 2019), and some unorganised ones expect sales to rise by just about 5-10%.

Ahammed MP, chairman at Malabar Gold & Diamonds, said the high prices of gold have dampened sales in the build-up to Akshaya Tritiya.

“There’s more store walk-ins during festive seasons as always, however, the purchase volume has slightly decreased,” he said. Nevertheless, he expected sales to surpass the previous year’s level.

Indian gold prices started inching up since January in response to geo-political tension, rising by 8% to Rs 45,434 per 10 grams (excluding taxes) in the March quarter. The prices stood at Rs 42,045 crore in the three months through March last year.The prices rose further in the current quarter, although they witnessed temporary fluctuations as well. In Delhi, the prices on Monday plunged by Rs 745 per ten grams in sync with the fall in global precious metal prices. Still, they remained elevated at Rs 50,936 per 10 gram.

Somasundaram PR, regional chief executive officer (India) at World Gold Council, said India’s gold jewellery demand declined by 26% on year in the March quarter to 94 tonnes, after reaching record highs in the December quarter. Fewer auspicious days, com- bined with a sharp spike in gold prices meant fewer weddings and a pause in retail demand, with households deferring gold purchases in the hope of a price correction. “As a major gold buying festival, we should see Akshaya Tritiya overcome these barriers and provide further impetus to demand in the second quarter. Underlying consumer sentiment is improving, which should also prove supportive.”

Aditya Pethe, Director at Mumbai-headquartered WHP Jewellers, said, “We are witnessing good footfall since 2021 Diwali, as consumers are catching up on lost time and have weddings planned. This year, Gudi Padwa witnessed a very good response and sales, so we are hoping that Akshaya Tritiya too will surpass our sales expectations.” He expected at least 15-20% rise in sales on Tuesday, against the pre-pandemic level.

Vaibhav Saraf, Aisshpra, director at Uttar Pradesh-based Aisshpra Gems & Jewels, said: “Given the upcoming wedding season and relatively stable prices (even at high levels), we are expecting good footfall and sales across our stores in Uttar Pradesh. We are expecting a 20% rise in sales, and an overall 20-25% rise in sales in the coming months.”

Shrey Mehta, director at Delhi-based Pooja Diamonds, said sales would rise on Akshaya Tritiya and will “continue to get better after the first week of June”.

Reema Pahuja, director at Mumbai-based Tikamdas Motiram Jewellers, said: “On a day like Akshaya Tritiya, window shoppers are very few and most of the customers walk in to buy, be it bridal jewelry or just bullion in form of token gold.” She expected sales to grow from the pre-pandemic level.