NEW DELHI (Scrap Monster): According to the intelligence agencies of India, the amount of gold smuggling into the country reached about 50 tons in the last financial year which is highly contradictory to the World Gold Council's figures of 200 tons.
As per the report, the amount of gold seized in 2013-14 is figured at about 1.45 tons while estimating 338 kg in 2012-13. The Union finance ministry's revenue department announced that the amount of gold seized in 2013-14 was 1.32 tones, till February 24 this year. In 2013-14, the number of seizures surged to 1,379 whereas it was 871, while it was in 2012-13.
Though, RBI enforced stringent import duties over gold, there were more gold reached in supply chain unofficially.
The smugglers carry the gold into the country for 18 percent commission from dealers. Despite the fixed amount they get shares of one-two per cent and hawala premium of three-four per cent.
The RBI is concerned about the rise in smuggling and there are anticipations that it will take enough steps to control this. It is said that overall gold demand is likely to moderate in the second quarter of 2014, since a price decline is predicted and consumers might get back from purchases.