Author: Paul Ploumis17 Apr 2014 Last updated at 00:48:08 GMT

The government on Wednesday hiked the import tariff value on gold and silver to $431 per 10g, $646 a kg, respectively, taking firm global cues. During the first fortnight of the current month, the tariff value on imported gold was fixed at $ 421 per 10g and silver at $644 a kg.

The import tariff value - the base price at which customs duty is determined to prevent under-invoicing - is revised on a fortnightly basis taking into account the volatility in global prices. The increase in tariff value on imported gold and silver has been notified by the Central Board of Excise and Customs, an official statement said.

In Singapore, gold prices on Wednesday ruled firm at above $1,300 per pounce and silver at $19.52 per ounce. In the national capital, gold price rose by Rs 130 to Rs 30,130 per 10g and silver fell Rs 300 to Rs 43,000 a kg. Due to government curbs, the country's total gold and silver imports dropped 40 per cent to $33.46 billion in 2013-14, as against $55.79 billion in the previous year.

Gold is the second largest import item for India after petroleum. The government had taken several measures to curb gold shipments to address the high current account deficit.

These measures include raising the import duty to 10 per cent on the metal and also made it mandatory for traders to export 20 per cent of the imported gold. The Commerce and Industry Ministry is pitching for easing of the gold import restrictions to boost gems and jewellery exports, which declined 8.82 per cent in 2013-14 to $39.52 billion.

Courtesy: Business Standard