Ahmedabad: The gleam seems to have gone out of festival sales, Ahmedabad’s jewellers fear. They feel this Diwali could be their weakest since the pandemic as sluggish demand has forced traders to cut orders despite encouraging bookings at exhibitions earlier this year.Jewellers say retail footfall and conversions were subdued through Navratri, and this could be a precursor of what festival sales could look like. Several traders have reportedly reduced orders placed at jewellery shows by nearly half and have sought delayed deliveries as they reassess demand.Industry participants said business-to-business bookings were encouraging at exhibitions held in July and Aug. Consumer demand, however, has failed to pick up in recent weeks, prompting jewellers to scale back production plans amid uncertainty over sales and fluctuating bullion prices.Gold prices in Ahmedabad have remained steady in recent days, settling at Rs 1.51 lakh per 10g on Monday.Virendra Soni, vice-president of the Jewellers’ Association Ahmedabad (JAA) and chairman of a gold jewellery manufacturing company, said manufacturing orders were down by about 20% from last year.“Retail demand has not started as expected during Navratri season, and there is a fear that Diwali demand may also remain low,” Soni said. “Due to this, many jewellers have decided to defer delivery of their orders. Jewellery exhibitions witnessed good orders in previous months, but many jewellers have reduced order size in recent days due to weak demand.”Ahmedabad jeweller Kalpanik Choksi said buyers are holding back amid price volatility. “Retail demand is very less and it may be the lowest since Covid. Gold prices are fluctuating a lot, so jewellers are cautious. Many have reduced their jewellery order size ahead of Diwali,” he said.JAA president Jigar Soni said overall demand remained slow, although some purchases were expected during auspicious festive muhurats.Haresh Acharya, director of the India Bullion and Jewellers Association (IBJA), said retailers are shifting focus towards lightweight designs, affordable alternatives and multi-metal options. He expects festive demand to rise during auspicious muhurats, but said the increase would largely be driven by gold bars and coins. Jewellery purchases, he added, remained restricted.In contrast, lab-grown diamond jewellery is gaining popularity, especially among young customers. Param Begani, director of a lab-grown diamond jewellery retail chain, said, “There is growing demand for lab-grown diamond jewellery among youth. Nine to 14 carat gold jewellery with lab-grown diamonds is popular,” Begani said.
Industry insiders speak
