Written by Intern Rency Gomes || Team Allycaral
Panaji, January 2026: Malabar Group Chairman M.P. Ahammad has warned 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 in India 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 necessitate daily revisions in gold prices.
Traditionally, daily gold prices are fixed in a transparent and reliable manner by trade associations and published before 9:30 am. Once announced, these prices remain valid for the day and are revised only in exceptional cases of extreme market volatility.
However, Ahammad noted that some traders have been arbitrarily increasing gold prices, contrary to the established pricing mechanism, without providing clear justification to consumers. He warned that such practices could erode trust in the sector and create concern among consumers, investors, and industry stakeholders.
Emphasising ethical business practices, Ahammad urged all stakeholders to refrain from actions that compromise the integrity and credibility of the gold trade. He reiterated that consumer interest remains the foremost priority for Malabar Gold & Diamonds, and that transparency and fairness must guide all business decisions.
He also highlighted Malabar Gold & Diamonds’ ‘One India One Gold Rate’ initiative, introduced to eliminate price disparities across states. Since tax rates are uniform nationwide and gold prices are linked to international benchmarks, Ahammad said gold should be sold at a uniform price across the country.
