THEBUSINESSBYTES
BUREAU
BHUBANESWAR,
JANUARY 19, 2026
Malabar Group Chairman M.P. Ahammad
has cautioned that certain emerging practices in gold price determination in
India deviate from established norms and risk undermining the long-standing
credibility of the country’s gold trade.
Ahammad explained that gold prices are
determined by three primary 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 necessitate daily price revisions.
Traditionally, gold prices are fixed
in a transparent and reliable manner by recognised trade associations and
published before 9:30 am each day. Once declared, prices are revised only under
exceptional circumstances, such as extreme market volatility.
However, Ahammad observed that in some
instances, a section of traders has been arbitrarily increasing gold prices in
deviation from the established mechanism, without providing clear justification
to consumers. Such practices, he warned, could erode trust in the sector and
raise concerns among consumers, investors, and other industry stakeholders. He
urged all concerned to refrain from actions that compromise the integrity and
credibility of the trade.
Reiterating Malabar Gold &
Diamonds’ commitment to consumer interest, Ahammad said transparency and
fairness remain central to all business practices of the group. He also
highlighted the company’s ‘One India One Gold Rate’ initiative, launched to
eliminate price disparities across states. Since tax rates are uniform
nationwide and gold prices are linked to international benchmarks, he noted,
gold should ideally be sold at a uniform price across the country.
