Gold imports may not rise as jewellers have enough stocks.

MUMBAI: Jewellers and bullion traders, who on Friday called off their 21-day nationwide strike against an increase in import duty on gold and excise duty on unbranded jewellery, feel that even though they expect a surge in demand, the imports are not likely to rise owing to sufficient stocks.

"Jewellery manufacturing was completely stopped during the 21-day strike. Therefore, there is an inventory of 5-10 tonne of gold, which will be used to fulfill the demand. So we feel import is not likely to rise," Bombay Bullion Association President Prithivraj Kothari told PTI here.

He further said it was too early to predict about the imports, which will also depend on gold prices.

The increased demand will create additional pressure on artisans as marriage and festival season is just kicking in, he said.

Jewellers were on strike from March 17 to protest the budget proposal to levy excise duty on unbranded jewellery and hike in customs duty to four per cent from two per cent.

The strike coupled with lean season has taken a toll on gold imports during January-March, which is likely to drop by over 56 per cent to 125 tonnes compared to the same period last year, Kothari said.

"It is March, which is a lean period for jewellery business. It is likely to be less than 125 tonnes in the January-March quarter," he said.

The gold imported during January-March 2011 was 283 tonnes and a total of 969 tonnes was imported in the same period in 2011, according to World Gold Council. The jewellers have reportedly incurred a loss of about Rs 20,000 crore during the strike.

India is the world's largest importer and consumer of the precious metal.

Source : economictimes.indiatimes.com