Gold imports at record low, festive season to be affected.

AHMEDABAD: The latest import figures have brought a bad news for the market. According to experts, this year the market may not be able to sustain the demands of gold and silver products during the festive season.

According to the latest figures, September recorded the second lowest gold imports in Gujarat in last five years. Only 153 kilograms of gold were imported in September compared to 170 kilograms in August. The lowest imports were recorded in February 2009 with just 151 kilograms of gold import.

Though in the period from April to September 2013, gold imports increased by 34.73 per cent compared to same period ast year, thanks to over 60 metric tonnes (MT) of import in April and May 2013.

On the other hand, silver imports dropped by 90 percent in September at 5.9 MT compared to 58.762 MT of silver imports in August 2013. With the festive season about to begin, this has come as a shocker for the consumers.

Experts and traders believe that the decline is due to trade restrictions put up on gold by Government of India since June 3 and also due to the sharp decrease in the price of silver in last three months. "There is no window open for the traders to import due to strict restrictions", said Monal Thakkar, president, Amrapali Industries.

"Had it not been for the earlier import orders placed by the traders, the gold import may have been zero in September," Samir Mankad, director, Gujarat State Cargo Exports Ltd (GSECL).

"This is the difficult time for the industry. With such low imports, market may not be able to cater to the demands in the festive season which begins with Navaratri," added Thakkar. Experts believe that decline in silver imports is not a cause of worry. "Earlier the traders had imported silver in huge chunks. Due to large stock already in the inventory there were less imports", said Kishore Javeri of Javeri and Company.

The traders want the Central government, customs, Directorate General of Foreign Trade (DGFT) and the Reserve Bank of India to come up with the actual policy which makes it possible for the traders to operate. "Ban on gold imports and 80/20 import rule has left the traders with no option," added Javeri.

Source : timesofindia.indiatimes.com