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Tuesday, January 14, 2014

Gold rush


The women’s commission in Kerala is trying to limit the amount of gold given at weddings to no more than 80 grams. This step is taken to reduce the burden on families and help ease India’s trade deficit. In Indian weddings, gifts of gold, mostly jewellery, are common. The bride’s family gifts gold to the groom to ensure financial stability and this is seen as an auspicious gesture. It is part of the fabric of the Indian belief system. The chairperson of the KWC, K.C. Rosakutty, said that the demand for gold has given rise to a dangerous trend as parents “sell residential property to buy gold for marriages and go for rented houses”. Kerala now uses up to 400 grams of gold per wedding, which was about a tenth of India’s total demand in 2012. The commission has sought a meeting with the chief minister of Kerala, Oommen Chandy, to fix the upper limit at 80 grams. The proposal is unlikely to find many takers in political circles ahead of the general elections in May. It is likely to remain only on paper because the gold industry is a big money spinner for political parties during elections.
However, it would be good news for the finance minister, P. Chidambaram, if the proposal is accepted. Apart from raising gold import duties to a record 10 per cent last year, he has also been vocal about the need to end Indians’ fascination with the yellow metal. It is heartening to know that gold and silver imports have declined by almost 70 per cent in December 2013, after the government imposed restrictions on the import of gold to narrow the current account deficit. The KWC should also educate the people to check their fondness for gold.

K.A. Solaman,  Kerala
The Telegraph, Calcutta published on 14-1-14

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