Gold Imports Peaked At 433 Tonnes In 1996

Gold imports in the country reached yet another milestone in 1996 totalling 433 tonnes through official and unofficial imports as compared to 406 tonnes in the previous year.

Of these, 109 tonnes were brought through unofficially according to the statistics provided by the Gold Fields Mineral Services (GFMS). Unofficial imports have declined gradually since 1992 when non-resident Indians (NRIs) were permitted to bring five kilos of gold on payment of a duty of Rs 220 per 10 grams. NRIs brought in 256 tonnes of gold in 1996 as compared to 228 tonnes in 1995.

The special import license (Sil) scheme introduced in 1994 also proved to be a great success accounting for 42 tonnes of gold brought into India in 1996 as compared to 21 tonnes the previous year.

The pattern of imports during 1996 reflected the movement of local prices, the survey said, adding that imports in January and February were held back on account of a surge in international prices and weakness of the rupee against the dollar.

Prices touched a record peak of Rs 5713 per 10 grams on account of inadequate stocks, and an upsurge in demand in February 1996 which was more than 22 per cent above the levels reached in February 1995.

In the subsequent months, imports were extremely high which were attributed to seasonal demand and to the general elections in early May. In the fourth quarter, the fall in interest rates and a recovery in the rupee value boosted imports to a record new peak of more than 120 tonnes in quarterly periodical imports.

In January 1997, NRI imports reached an unprecedented level of 32.6 tonnes following relaxation in rules allowing NRIs to import 10 kilos of gold.

Although supply for fabrication was faltering from mid-year onwards, when the economy was afflicted by a `money crunch, it was sustained by a higher inflow of gold scrap weighing around 100 tonnes in 1996. During the marriage season in the final quarter of the year, demand for fabrication rose to 428 tonnes.