Author: Paul Ploumis01 Apr 2014 Last updated at 08:14:09 GMT

NEW DELHI (Scrap Monster): In accordance with the latest official trade data, the gold bullion imports by the country’s Northern state of Gujarat touched lowest levels in five years during the financial year FY ’14. The imports failed to cross even 100 metric tonnes this year.

As per trade figures released Monday, the total gold imports during the period from April ’13 to March ’14 amounted to 92 metric tonnes. The gold imports during the fiscal year plunged to nearly half when compared with the total gold imports of 193 metric tonnes during FY ’13.

The gold imports during the month of March this year totaled 5.37 metric tonnes. The monthly gold imports dropped by 34.43% upon comparison with 8.19 metric tonnes of gold that were imported during the same month a year before. The trade data also indicate that the state-run gold importing agency accounted for more than half of the March ’14 gold imports.

According to bullion traders, the volatility in gold premiums and the high duty structure on gold imports have badly affected the gold imports. The sharp fall in gold buying premiums from $110 to $40 per troy ounce has failed to trigger gold imports. The yellow metal firmly ruling at higher levels has led to a major shift in consumer sentiment towards Silver.

Quite contradictory to gold, the imports of silver hit five-year highs, totaling 1400 metric tonnes during FY ’14. The silver imports during the fiscal surged 193% in comparison with the total imports of 486 metric tonnes recorded during FY ’13. However, silver imports during March alone plunged by more than 250% over the previous year, mainly owing to import duty hike in Silver to 10%.