MUMBAI(MCXBABA.COM): India Gold Goods have not registered significant Growing this month despite Government removing Import curbs.
As per Buyers, the imports during the first half of December have touched only 15 tonnes on consignment basis.
“Post 20:80 scrapping, imports continue to happen from dore refiners and agencies other than banks on consignment basis. However, it is very limited due to existing supply glut and slack demand due to price sensitivity and seasonal reasons, ”
India’s gold imports in November spiked to touch 151.58 tonnes which marked a 38 percent increase from 109.55 tonnes in October, according to a data released by the trade Ministry.
India had eased the restrictions on gold imports by withdrawing the 80:20 scheme in November end. The 80:20 rule is a law that obliges importers to re-export of their commodity shipments before the rest can be distributed in India for commercial use. The 80:20 rule was first launched in the country on August 2013.
Merchandise trade deficit widened $16.9 billion in November – an 18 month high. A year ago, trade deficit was under $10 billion. It was led by a surge in gold and core (non-oil non-gold imports) imports.
Surge in gold imports in November was perhaps led by higher demand spurred by the festive and upcoming wedding season and low prices (Rs 1,176/troy ounce vis-a-vis Rs 1,276/troy ounce a year ago).