Dullest Akshaya Tritiya gold sales in years

Combined gold imports in March and April, the months preceding Akshaya Tritiya, have been the the lowest in six years

The Akshaya Tritiya of 2016 was one of the dullest gold buying festivals in the last six years. This is apparent from the import of gold ahead of the festival.According to data released on Friday by the ministry of commerce, April gold imports were around 30 tonnes. March imports too were around 22 tonnes. Data for the two months prior to Akshaya Tritiya mark this season’s imports as the lowest in the last six years.

Rajiv Popley, director of the Popley Group, said, “Gold demand was passive, especially for small jewellers. Bigger jewellers were also affected by high prices and the strike.”Several jewellers have lost workmen after a 42-day strike till the middle of April and they had to work with limited pool of employees.Imports ahead of this year’s Akshaya Tritiya were lower than in 2014 when there were severe restrictions on gold imports.

The market had remained in discount prior to Akshaya Tritiya and the discount widened after the festival to $10-12 per oz. Discounts to the landing cost of gold make imports unviable. However smuggling had increased because of the excise duty imposed on gold jewellery, trade sources said.

A group of 50 jewellers formed a federation last month and presented a memorandum to the finance ministry stating they would deal in gold only through banking channel to expose those dealing in bullion in cash. According to their spokesperson,  smuggling has increased significantly and it needs to be discouraged. The bullion market is now entering a lean season. There may be some demand for the marriage season but June and July are traditionally lean months and demand revives in August followed by post-monsoon buying in the countryside.