Govt calls meeting to discuss gold supply to exporters

Will discuss how to ensure consistent and uninterrupted supply of gold to gold jewellery exporters

Union commerce ministry has called a meeting of gold jewellery exporters and domestic players to discuss issues related to supply of gold on Wednesday 7 January. Sources said that the government invite says that the meeting is being called to discuss how to ensure consistent and uninterrupted supply of gold to gold jewellery exporters, however it is quite possible that government wants to ensure that gold import doesn't go up after removal of all restrictions.

Another source said that bullion sector being major contributor to employment generation, government could spell out their plan on the subject.

During 80:20 days there were no problems to exporters to get gold while following its removal, commerce ministry wants to ensure that such issues doesn't arise again and hence issue to supply to them as well as need for other incentives will be discussed. Government has yet not spelt out its mind on what exactly it wants to do.

After removal of 80:20 import is much lesser but whatever is imported is happening on consignment bases, the route which was widely used prior to 80:20 was imposed. Under this route importer makes payment only when he actually sells the gold. However availability of gold on loan is facing some issues which need to be smoothened, said one bullion trader who is aware of the discussions between the government official and industry.

He also said that industry representatives met the Prime Minister on 'make in India' initiative. Industry had suggested to reduce import duty on gold and also on plant and machinery used by the industry. On duty reduction issue revenue department is said to be gauging impact of reduction.

Some players still feels that to control import of gold, government may consider quota for importers.