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Gold entry through smuggling estimated at 50 tonnes in Jan-Mar

WGC had earlier estimated around 200 tonnes of gold was brought into India through smuggling in calendar year 2013

Dilip Kumar Jha  |  Mumbai 

Gold Coins
Gold image via Shutterstock

Around 50 tonnes of entered India in the first quarter (January-March) of 2014 through smuggling, estimates the World Council (WGC), due to continued restrictions on through official channels.

“Broadly, we estimate 20-25 per cent of demand is met through smuggling, which continued in the first quarter of (calendar year) 2014 as well,” said Somasundaram P R, managing director of India at the issue of its Demand Trend report for the period.


had earlier estimated around 200 tonnes of was brought into India through smuggling in calendar year 2013.

continued to enter through unofficial channels and whilst the estimate of the grey market varies, there is now far great understanding of the adverse impact it is having on the Indian industry and genuine consumers,” said Somasundaram.

To curb the current account deficit, the Union government has restricted banks on import of coins and medallions.

India primarily jewellery from West Asian countries. sales in the region rose to 66.2 tonnes in the first quarter of 2014, compared with 57.1 tonnes in the corresponding period last year. sales in Saudi Arabia, Egypt and the UAE moved up nine per cent, 26 per cent and 16 per cent, respectively.

The government is concerned about the rise in smuggling and there are expectations that it will take some steps to control this. Overall demand is expected to moderate in the second quarter of 2014, since a price decline is expected and consumers might defer purchases.

First Published: Tue, May 20 2014. 22:33 IST
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