INDIA June 21 2017 11:38 AM
MUMBAI (Scrap Register): With the sowing commencing in India from the start of monsoon, the rural demand of Gold has declined by about 30 to 40 percent over the fortnight. Farmers are busy buying seeds, fertilizers, tractors etc.
"The upcountry demand has fallen in the last fortnight as sowing has picked up across the country . Overall too, we do not see an immediate pickup in demand after GST is rolled out on July 1” as per Ketan Shroff, director, India Bullion and Jewellers Association.
It is expected that after the introduction of GST, it will take at least two quarters to for the market to settle down. However, expectations of a good monsoon have raised hopes among traders of a boost in demand during the festive season.
About 17 percent of India's overall economy is contributed by agriculture, it employs two thirds of the rural population.Once rural India has harvested and sold the crop, a portion of the proceeds are invested in gold, mainly plain gold jewelry.