Gold Imports Soar 163% At 675 Tonnes

Gold imports touched a record 675 tonnes in 1997-98, an increase of a whopping 163 per cent over the 256 tonnes logged in 1996-97.

However, the duty collection is expected to fall short of the targetted Rs 1,600 crore.

Sources attributed the surge in imports to the liberalisation of gold import norms in October and the plunge in international prices. Besides, another 200-odd tonnes which used to be smuggled into the country is now coming in through the official channels.

The new gold import norms have wiped out the earlier mark-up in domestic prices, permitting domestic consumers to purchase the yellow metal at international prices for the first time.

Significantly, liberalisation has not led to any substantial decline in the quantity of imports accruing by way of returning NRIs imports through this route continue to average about 30 tonnes.

Imports through the OGL route amounted to only 10.6 tonnes in October. While the all-India data is still being compiled, imports in Ahmedabad and Delhi alone aggregated 40 tonnes in December, rising to 47 tonnes in January. This has been accompanied by a decline in imports via the SIL route, which dropped to 0.8 tonnes in November aggregated 3 tonnes in October and 13.2 tonnes in November, in December.

Imports by NRIs the third window have fallen only marginally from 34 tonnes in October to 28 tonnes in December.

Officials said this was because this route accorded a certain level of protection to the NRIs as the customs department does not normally pose queries to them.