Gold refineries suffer after higher import duty slapped on yellow metal

The demand for gold took a major hit in the domestic market after the import duty on the precious metal was raised from 10 per cent to 12.5 per cent, leading to a sharp increase in gold prices

Gold refineries, supplying 45-50 per cent of pure gold for India’s domestic consumption, have virtually come to a standstill following the imposition of a higher import duty which has resulted in huge a discount thereby making their business unviable. Under the ‘Make in India’ initiative, these dore refineries enjoyed a lower duty on imports of unrefined, or dore gold. Now, at least for bullion refining, ‘Make in India’ is dead.

While two or three refineries, including MMTC-PAMPS, are still operating, an industry official, commenting on the evaporating demand for gold, said that "by next month, refining business will come to