Gold imports have remained unabated in the month of April despite fears that unseasonal rains and hailstorms that had impacted agri crop and fortunes of farmers will impact rural demand for the yellow metal.
Trade sources said India's total gold import in April is estimated around 85-90 tonnes ($3.5-4 billion). Gold import in March was much higher at 121.8 ($4.98 billion) tonnes but that was because many traders and investors had delayed their purchases in previous months expecting cut in import duty in the budget, the hope that didn't materialised. Gold import in April, 2014 was 58 tonnes.
That supressed demand in past and demand for Akshaya Tritiya (21 April) resulted in higher demand in March and part of that demand spilled over in April also, said a CEO of listed jewellery company. Many however had expected that gold imports will recede from April because impact of unseasonal rains on agri crops was expected to impact rural demand as farmers will have lesser cash to buy gold.
Rajiv Popley, Director Popley group said, "gold demand remained better even in April also because marriage season demand was good and during Akshaya Tritiya days pre-booking was happening and after scrapping of 80:20 general sentiment among bullion traders have also improved."
That is however still seen as a possible dampener for gold demand. While in April, higher imports may still be attributed to Akshaya Tritiya related demand, in May demand may be impacted and weather body forecasts of below normal monsoon will haunt gold demand. Even Marriage season also coming to an end and next two months are seasonally seen as dull season for gold buying.
Popley said that, "rural demand has started moderating which will lead to lower imports and down south markets where rural demand has started to decline."
Source:business-standard.com
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