| Date: |
01-07-2014 |
| Subject: |
Gold imports highest in 13 months |
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AHMEDABAD: Relaxation in curbs on gold imports by the new government and decrease in premium on gold have led to highest gold imports in the state in last 13 months. For the first time, gold imports crossed double-digit figures since June last year when restrictions on gold imports were imposed by central government to control current account deficit (CAD).
According to latest figures, 14.33 metric tonnes (MT) of gold were imported in June 2014 compared to 3.74 MT in the same period in 2013, recording growth of 74%. In 2013-14, only 92 MT of gold were imported in comparison to 193 MT in 2012-13, making it lowest in the past five years.
The UPA government had raised the import duty from 2% to 10% to control CAD. The central government also imposed 80:20 rule which mandated that 20% of imported gold be exported. Though the government was able to trim the CAD, the restrictions on imports led to rise in gold smuggling in the country and also shortage of gold in the domestic market.
In the third week of May this year, the central government eased the curbs on imports. "The prices have also come down after the Reserve Bank of India (RBI) provided conditional relief in gold import restrictions by allowing STAR trading houses to import gold. The premium on gold has come down from $130 per ounce to $35-$40 per ounce (31.99 ounce= 1kg)," said Monal Thakkar, president, Amrapali Industries.
The industry overall saw de-growth of 30% in 2013-14 and is now pinning its hopes on new government. According to experts, weak monsoon would moderate gold demand if some more import curbs are eased.
"We are expecting a 2% cut in the import duty by the government in the upcoming budget. Gold prices are currently hovering at Rs 28,500 per 10 gram mark," said a city-based bullion trader.
Meanwhile, silver imports reported a downfall in June as the imports dropped to 3.79 MT, way below 112.20 MT imported in June 2013. In 2013-14, 1,425 MT of silver were imported, highest in last five years.
Source : timesofindia.indiatimes.com
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