The Rising Trend of Gold Smuggling in Kerala: A Closer Look

How gold smuggling thrives in Kerala - India Today

According to the official, the gold smuggling racket in Kerala thrives because of Gulf links, profits from duty evasion and corruption among enforcement officials. Now, there is a high demand for women and teenagers as carriers of smuggled gold.

Gold smuggling, a phenomenon that has been in existence for centuries, continues to flourish in various parts of the world. However, one region that has gained significant attention in recent years is the Indian state of Kerala. This picturesque coastal state, known for its lush green landscapes and vibrant culture, has unfortunately become a hotspot for gold smuggling activities. In this blog post, we will delve into the reasons behind the surge in gold smuggling in Kerala and explore the implications it has for the state and its people.

The Allure of Gold

Gold has always held a special place in Indian culture and traditions. It is not just a precious metal but also a symbol of wealth, prosperity, and social status. Indians have a deep-rooted affinity for gold and consider it an essential part of weddings, festivals, and important ceremonies. The demand for gold in Kerala is particularly high due to its large population and the significance attached to gold within the local culture.

Unfortunately, the high demand for gold in Kerala has resulted in a thriving black market for the precious metal. Smugglers take advantage of this demand and exploit the loopholes in the system to bring in gold illegally. They often resort to innovative methods like hiding gold in electronic appliances, clothes, or even body cavities to avoid detection by customs officials.

Factors Contributing to Gold Smuggling in Kerala

Several factors have contributed to the rise in gold smuggling in Kerala. Firstly, the high taxes and import duties imposed on gold by the Indian government have made it an attractive proposition for smugglers. The inflated prices due to these taxes make it lucrative for smugglers to bring in gold through illegal means and sell it at a lower price in the black market.

Secondly, the geographical location of Kerala makes it vulnerable to smuggling activities. The state’s extensive coastline and numerous ports provide easy access to international waters, making it an ideal entry point for smugglers. Additionally, the close proximity to countries like Sri Lanka and the Middle East, where gold is relatively cheaper, further facilitates the smuggling operations.

The Impact on Kerala

The rampant gold smuggling in Kerala has far-reaching consequences for the state and its economy. The influx of smuggled gold leads to a significant loss of revenue for the government, as the taxes and import duties are evaded. This loss has a direct impact on the development and welfare programs that the government can undertake.

Moreover, the thriving gold smuggling trade also poses a threat to the legitimate jewelry industry in Kerala. Authorized jewelers who follow the legal procedures and pay the required taxes find it increasingly difficult to compete with the lower prices offered by smugglers. This not only affects the livelihoods of honest traders but also tarnishes the reputation of the state’s jewelry sector.


While gold smuggling continues to plague Kerala, it is important to address the root causes and implement effective measures to curb this illegal trade. Stricter border controls, enhanced surveillance, and increased awareness among the public about the consequences of buying smuggled gold are some steps that can be taken to combat this issue. By working together, the government, law enforcement agencies, and the people of Kerala can ensure that the state remains free from the clutches of gold smuggling and upholds its reputation as the ‘God’s Own Country’.

Leave a Reply

Your email address will not be published. Required fields are marked *