INDIA November 13 2013 6:44 PMMUMBAI
(Scrap Register): The world's biggest bullion consumer India's gold imports are likely to drop by 71.23% year-on-year during last quarter of this year mainly due to country's efforts to curb gold imports.
“In October, the country enters into a festive mode and Indians generally purchase gold with the onset of Navratri. But this year, there wasn't much enthusiasm among people to buy gold. Though some buying happened during Dhanteras, jewellery sales were still down by almost 30 per cent. There was an 80% reduction in demand for bars and coins. We had imported 23 tons of gold which was higher than September's import of 11.16 tons," said Haresh Soni, chairman, All India Gem and Jewellery Trade Federation (GJF), in an interview with ET.
The GJF chairman said that in November and December jewellery trade does not see much imports. It will not be more than 50 tonne. People are cautious in spending money for gold. The drop in gold imports took place after Reserve Bank of India had said on July 22 that a fifth of the gold purchases by importers in every lot would have to be exclusively made available to exporters.
India has imported 255 tons of gold in the fourth quarter of last year. The fourth quarter is the time of the year when gold demand increases in India.
The most-active gold contract for December delivery was 0.99 per cent lower at 30,109 rupees ($470) per 10 gram at 0934 GMT on the Multi Commodity Exchange.
India celebrated Dhanteras, the biggest gold buying festival, and Diwali earlier this month, when scarcity of the yellow metal and higher prices pushed consumers to buy silver and diamond jewellery.