Business Standard

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

Gold Coins
Gold image via Shutterstock
Related News

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

“Broadly, we estimate 20-25 per cent of gold 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 Gold Demand Trend report for the period.

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

“Gold 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 gold industry and genuine consumers,” said Somasundaram.

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

India primarily imports gold jewellery from West Asian countries. Gold 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. Gold 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 gold demand is expected to moderate in the second quarter of 2014, since a price decline is expected and consumers might defer purchases.

Read more on:   
|
|
|
|
|

Read More

Gold jewellery exports up 14.7% in April

India's gold jewellery exports grew for the third month in a row by 14.69 per cent to USD 604.42 million in April, according to Gems and Jewellery ...

Quick Links

 

Market News

FMC gives conditional nod to MCX for launching contracts till March

However, the regulator also directed MCX to take all pending actions on findings of PwC Report and furnish a new compliance report by 15th Oct, ...

Shares up on Chinese stimulus, hopes of delay in US ratehike

The BSE Sensex gained 138 points or 0.5% to close at 26,63

Rubber output drops 26% in Aug; imports continue to surge

The production between April and August, the first five months of the current financial year, saw a 4.5% rise in overall production, to 277,000 ...

Another sugar supply glut year in the offing

India's sugar production to rise 3-5% in 2014-15, 1.5 million tonnes higher than consumption, price to remain subdued

Markets end higher ahead of Fed outcome, China stimulus

The 30-share Sensex gained 139 points to end at 26,631 and the 50-share Nifty climbed 43 points to close at 7,975.

Back to Top