India’s gold imports stable at 100 tonnes in Nov

The Dollar Business Bureau

The gold imports of India remained stagnant in the month of November at around 100 tonnes, despite decline in jewellery sales due to the cash crunch owing to the government’s demonetization initiative.

The country had imported around 97 tonnes during the month of October, according to Bacchraj Bamalwa, Director of All India Gems and Jewellery Trade Federation (GJF).

“The imports of gold were normal in the last month, about 100 tonnes and took place due to demand in the wedding season,” he said.

The shipments are likely to halve when the wedding season ends in mid-December.  In addition, there is a surplus stock from the previous month.

The demand in rural areas has been affected because of the cash crunch after the demonetization of Rs.500 and Rs.1,000 notes, he added.

However, the total imports of gold in the quarter of October-December are likely to be around 250 tonnes, almost equal to the same period a year-ago.

Bamalwa further said that India’s overall imports of gold for this calendar year are expected to drop to 650 tonnes from last year’s 850 tonnes due to poor sales after the jewellers’ strike for two months against the decision of the government to impose 1% excise duty.

As per a report by World Gold Council, the gold demand in India is dropped by 28% to 194.8 tonnes during the quarter July-September of the current year due to high prices, regulatory changes and not so recovered rural wallet.

The overall demand for the entire year is likely to be in between 650-750 tonnes, the Council said.