Gold Bullion Imports by Indian state hit 13-month highs in June '14

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 highest levels in thirteen months during the month of June ’14, primarily on account of recent relaxations in gold import norms by the new government.

As per trade figures released yesterday, the total gold imports during the month of June totaled 14.33 metric tonnes (MT). This is the first time in past one year that the monthly gold imports have crossed double digits. The gold imports surged by 74% when compared with the total gold imports of 8.74 MT during June last year.

During third week of May, the government had announced relaxation on gold import curbs, by allowing star and premier export houses to import the yellow metal while banks and nominated agencies were allowed to provide gold for domestic use as loans to jewelers and bullion traders. Consequently, the domestic gold price in the country declined sharply. The premium on gold too plunged from $130 per Oz to $35-$40 per Oz.

On the other hand, silver imports by the country plunged during the month of June this year. The silver imports by the state during June 2014 totaled 3.79 MT, significantly lower when compared with net imports of 112.20 MT imported during June 2013.

According to industry sources, the gold industry in the country witnessed de-growth of 30% in 2013-’14.