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Gold imports stable at 100 tons in November

Rural demand is affected due to cash crunch following demonetisation of Rs 500 and Rs 1,000 notes since November 8

Press Trust of India  |  New Delhi 

Photo: Shutterstock
Photo: Shutterstock

India's remained stable at around 100 tonnes in November despite fall in sales of jewellery due to crunch post

The country had imported about 97 tonnes during October, according to All Gems and Jewellery Trade Federation (GJF) Director Bacchraj Bamalwa.

"were normal during last month at around 100 tonnes. took place to meet wedding demand," he said.

Asked about the outlook for December, he said that the shipments are expected to halve as wedding season would end mid-December and moreover there is carryover stock from the last month.

The rural demand is affected due to crunch following of Rs 500 and Rs 1,000 notes since November 8, he added.

However, the overall imports in the October-December quarter is expected to be around 250 tonnes, which is almost similar to the year-ago period.

Bamalwa also said that the country's overall gold imports for the current calendar are likely to decline to 650 tonnes from 850 tonnes last year due to poor sales following the strike by jewellers for two months against the government decision to impose one per cent excise duty.

Chairman G V Sreedhar said, "Imports are likely to be 50 tonnes or even less, which is not surprising looking at the current circumstances."

The crunch has hit demand as sales were down by up to 80% initially but the situation is improving, he said, adding that sales are happening through digital mode. Even unorganised players are using the digital platforms, he added.

According to the World Gold Council's report, India's gold demand declined by 28% to 194.8 tonnes during July-September quarter of this year due to high prices, not so recovered rural wallet and regulatory changes.

The demand for the full year is expected to be in the range of 650-750 tonnes, it said.

First Published: Thu, December 01 2016. 21:42 IST