Over stocking by bullion traders in last few months of 2014, scrapping of 80:20 rule by central government and increase in international prices resulted in decline in gold imports in month of January in Gujarat. The imports were at 14-month low last month with little over 1.5 metric tonnes (MT), lowest since November 2013 when 0.2MT gold was imported.
According to latest figures, 1.58 MT of gold was imported in January 2015 compared to 4.57 MT in the same period in 2014. After record import in November last year (39.9 MT), the month of December saw a drastic fall, with only 2.6MT of the gold being imported.
The imports of yellow metal recorded substantial increase in later half of 2014 following Reserve Bank of India's (RBI) decision to provide conditional relief in gold import restrictions by allowing premier trading houses to import gold in September last year. However the imports fell to single digit owing to high international prices and availability of gold in local market.
"One of the major reasons for high imports last year was the fear among the bullion traders that central government may toughen the restrictions on imports," said Monal Thakkar, president, Amrapali Industries. "Traders imported in large numbers to cater to the demand during Diwali and marriage season which led to over stocking," added Thakkar.
The scrapping of 80:20 rule which mandated traders to export one-fifth of the gold consignment imported also led to decline in imports. In case of silver, only 5.27MT were imported in January 2015 compared to 41.57MT in same period last year.
Source:- timesofindia.indiatimes.com
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