According to the Union Finance Ministry, Kerala has registered the highest number of gold smuggling cases in the country. Tamil Nadu and Maharashtra held second and third positions, respectively. Kerala Police seized 2,291.51 kilogrammes of smuggled gold and registered 3173 cases in the last four years, while Tamil Nadu and Maharashtra registered 2979 and 2528 cases, respectively.

According to a report, the quantity of gold seized in Kerala is increasing year by year. In 2020, Kerala police seized 406.39 kg of gold and registered 672 cases, while in 2021, the quantity of gold seized increased to 586.95 kg, with cases rising to 738. In 2022, total gold seized was 755.81 kg, and 1035 cases were registered. In 2023, until October, there were 728 cases registered and 542.36 kg of gold seized.

Kerala has become the hotspot of gold smuggling, with the advantage of three international airports situated in Thiruvananthapuram, Kochi, and Kozhikode, where the majority of the cases have been reported. According to the officials, these airports are reeling under a customs staff shortage, which the smugglers are capitalizing on.

The officials also said that a large chunk of the gold has been smuggled from Gulf countries. Gold smuggling refers to secretly importing a disproportionate amount of gold from a foreign country while evading import duty. The innovative ways being undertaken by perpetrators to smuggle gold have made headlines recently.

There are many instances wherein gold was smuggled inside the rectum. Smugglers have also tried to hoodwink officers carrying gold in suitcase rods, socks, deodorant bottles, and alarm clocks. In September, 5.4 kg of gold paste worth Rs 3 crore was seized from six passengers, which smeared on their bodies, clothes, and bags at Calicut airport. In an incident at Surat Airport, three passengers were held for concealing 48 kg of gold worth Rs 25.26 crore kept in five black belts.

Experts attribute the increasing number of gold smuggling cases to heavy import duties. The government last year increased the import duty on gold from 7.5% to 12.5%, which made yellow gold precious since its price in the international market had already surged.

In the list of gold-consuming countries, India takes second place behind China. India consumes approximately 849 metric tonnes of gold per year, while China consumes roughly 984 metric tonnes, according to Provident Metals.