MUMBAI -- India's state-run trading house MMTC Ltd. is likely to import 9 to 10 metric tons of gold in April, a senior executive said Tuesday.
"We expect to import 9 to 10 tons of gold this month," Managing Director Sanjiv Batra told reporters on the sidelines of a conference.
"The country will import about 30 tons of gold this month," he added.
India, which is the world's biggest consumer of gold, imports 700 to 800 tons of gold annually.
MMTC, which imported 150 tons of gold in the 2008-09 financial year, will import around the same quantity in 2009-10, Mr. Batra said.
India's gold imports had virtually dropped to zero in February and March due to volatile prices and the economic slowdown.
Imports have resumed in April, ahead of Akshaya Trithiya, a day considered auspicious by Indians for buying gold jewelry and which falls on April 27 this year.
"We expect to see a revival in gold demand from October," Mr. Batra said, adding purchases during the Diwali festival in October could stoke a revival.
In India, buying gold jewelry during Hindu festivals and weddings is considered auspicious.
Mr. Batra also said he expects gold prices to rise as they have already bottomed out.
MMTC, one of the four state-run firms authorized by the government to import up to 1 million tons of duty-free white sugar by Aug. 1, is in talks with various suppliers, Mr. Batra said.
"We are yet to finalize sugar import contracts," he said, adding the company was seeking parity between the landed cost of imported sugar and local prices before finalizing deals. "We expect the price parity will be reached soon."
Currently, domestic prices are quoting lower than the estimated landed price of imported white sugar.
India, which is facing a sharp fall in sugar production, has relaxed import norms for raw and refined sugar. Earlier this week, the federal government allowed four state-run companies to import up to 1 million tons of refined sugar by Aug. 1.
MMTC, which is also one of the largest exporters of iron ore from India, is facing a demand slowdown in the raw material. "The iron ore export situation is quite bad," Mr. Batra said.
He expects the country's iron ore exports to fall in 2009-10 due to a fall in demand from China.
However, Mr. Batra added, the export demand from the southwestern state of Goa was relatively robust because the state mostly exports relatively cheaper low grade iron ore.
Goa exports 35 million to 40 million tons of India's total annual exports of about 100 million tons.
Source : online.wsj.com