India imports 37.5 tonnes gold in Sept

Gold imports rose by 72 per cent to 37.5 tonnes in September as compared to previous month on the back of increased demand during festive season.

The precious metal import stood at 21.8 tonnes in August after witnessing nearly three-fold increase from July's 7.8 tonnes, data provided by the Bombay Bullion Association showed.

The volume of shipment increased due to festive season demand, starting with 'Durga Puja' and 'Navratras' and followed by 'Dhanteras' and 'Diwali', Bombay Bullion Association Director Suresh Hundia said.

However, he said, the imports is likely to fall from this level in October after the festival demand is over. 

"After 'Dhanteres', considered auspicious for buying the yellow metal and was celebrated on October 15 and 16, there was hardly any imports and till October 22 the shipment stood at 27 tonnes, which will not go up much till the month-end," he added.

During the festival season this year the demand was more for gold coins than for retail jewellery as the prices were ruling above the Rs 16,000 per 10 grams level, he added. 

He said the high prices are likely to affect the demand. Gold prices were ruling at Rs 15,898 per 10 grams for MCX December delivery and on the international comex it stood at 1,034.8 dollar an ounce (28.34 grams). 

The imports stood at 54 tonnes in the same month last year.

Gold imports have been sluggish so far this year and were at 118.7 tonnes during January-September 2009, compared to 315 tonnes in the same period last year, according to the Bombay Bullion Association data.

In January, only 1.8 tonnes of gold was imported followed by no imports during February and March due to lack of demand on high prices following recessionary pressures.

Gold imports had touched 20 tonnes in April, on account of 'Akshaya Tritiya', a festival during spring which is considered auspicious for buying gold.