Enough stocks to meet gold demand: Traders

Gold imports are unlikely to rise immediately, as the spurt in demand on account of the 21-day stir by bullion traders will be met by existing stocks, the Bombay Bullion Association said on Friday.

“Jewellery manufacturing was completely stopped during the 21-day strike. Therefore, there is an inventory of 5-10 tonnes of gold, which would be used to meet the demand. So, we feel import is not likely to rise," said president of the association Prithivraj Kothari. He added it was too early to predict the amount of imports. This, he said, would depend on gold prices.

The increased demand would lead to additional pressure on artisans, as the marriage and festive season was kicking in, he said.

 

Jewellers on Friday called off the strike, which started on March 17 to protest against the Budget proposal to levy excise duty on unbranded jewellery and the rise in customs duty from two per cent to four per cent.

Imports were estimated to drop 56 per cent to 125 tonnes, compared to the same period last year, Kothari said.