Gold, silver jewellers may see dip due to longer inauspicious period of Adhik Maas

After a robust first quarter in the 2023-24 financial year, the Indian jewellery industry may possibly see a dip in demand due to a longer inauspicious period called the Adhik Maas. According to Surendra Mehta, Secretary of the India Bullion & Jewellers Association (IBJA), the upcoming Adhik Maas, an intercalated month in the Hindu calendar, could impact the buying patterns during the festive season, which is typically marked by celebrations, weddings, and auspicious occasions. While a slight slowdown in demand has been observed, it remains to be seen to what extent the jewellery industry will be affected.

Adhik Maas is an additional month inserted in the Hindu lunar calendar to maintain synchronization with the solar calendar. This intercalated month occurs approximately every 32.5 months and can impact various aspects of Hindu religious and social life, including traditional festivities and purchasing patterns. This year, Adhik Maas is anticipated to influence the demand for gold and jewellery during the upcoming festive season, creating a longer period of inauspiciousness.

Surendra Mehta, while speaking to CNBC-TV18, noted that the customary purchase of gold during celebratory and wedding seasons would likely be affected in the next three to four months due to the longer inauspicious period. With Navratri set to commence around October 15 and Ganesh Chaturthi in September, this year's extended inauspicious phase is already being reflected in a slowdown of jewellery demand. However, Mehta clarified that the slowdown has not been as significant as initially anticipated.

“Since gold is normally purchased during the celebration time, festival time, wedding times, definitely it is going to impact the next three-four months. Because of Adhik Maas, the Navratri will start somewhere around October 15, there is Ganesh Chaturthi in September, so this year this is a longer inauspicious period and that is why we have started seeing the impact of slowdown in the jewellery demand,” he said.

“But it is not to the extent we had expected,” he added.

Jewellers across India are gearing up to navigate the challenges posed by the prolonged inauspicious period. They understand that consumer sentiment and buying patterns may be influenced during this time, prompting a need for strategic adjustments. While the impact is expected to be felt, the industry remains hopeful that the allure of gold and the cultural significance associated with jewellery will persist despite the inauspicious phase.

In order to mitigate the potential decline in demand, jewellers may employ various strategies to attract customers during the inauspicious period. This could include introducing innovative marketing campaigns, offering discounts or attractive incentives, and highlighting the emotional and traditional value of jewellery beyond its association with auspicious occasions.