MUMBAI Jan 8 The women's commission of India's
Kerala state is seeking to limit the amount of gold given at
weddings to no more than 80 grams to reduce the burden on
families and help ease India's trade deficit.
Most Indians see gifts of gold, mostly jewellery, from the
bride's family to the groom as auspicious for a marriage,
helping to ensure financial security.
But grooms have been seeking increasing amounts of gold as
rising duties and restrictions on imports have led to a shortage
in India, the world's second-largest gold consumer after China.
"The tendency among our parents (has become) to sell
residential property to buy gold for marriages and go for rented
houses," K.C. Rosakutty, chairperson of the Kerala Women's
Commission told Reuters.
"This is creating a lot of trouble for families."
The state of Kerala now uses up to 400 grams of gold per
wedding, or 80 tonnes per year - about a tenth of India's total
demand in 2012.
The commission has sought a meeting with Kerala Chief
Minister Oommen Chandy to press for a limit on gold gifts at 80
grams, which would cost about 224,800 rupees ($3,600). Chandy
could not immediately be reached for comment.
The proposal is unlikely to find any takers in political
circles ahead of elections due by May, experts said.
"Gold is more of a culturally deep-rooted thing, and this
would find resistance among women themselves," said Rammohan
Kamath, secretary of the Calicut Bullion Dealers Association in
"This will all remain on paper. Even for political parties,
the gold jewellery business is a big money spinner for
elections," Kamath said, adding that implementing the cap would
be difficult anyway.
If the proposal were to be accepted, it would be good news
for Finance Minister Palaniappan Chidambaram. Apart from raising
gold import duties to a record 10 percent last year, he has also
been vocal about the need to end Indians' fascination with gold.
Bullion prices have risen by 120 times since 1972 to about
29,000 rupees per 10 grams currently, data from the Reserve Bank
of India showed.
Meanwhile, India's gold imports have dropped by more than 50
percent in recent months from previous average levels of about
60 tonnes per month.
Imports fell to 21 tonnes in November from a record of 162
tonnes in May, and the total for 2014 is expected to drop to
around 500 to 550 tonnes, according to trade body All India Gems
and Jewellery Trade Federation.
($1 = 62.3200 Indian rupees)
(editing by Jane Baird)