Deficit Worries may Ease with 41% likely Fall in Gold Import
Shop closure due to strike leaves jewellers with ample inventory
Kolkata: Gold imports are likely to drop 41% in April from that a year ago, a development that augurs well for the Narendra Modi government’s efforts to keep current account deficit under control.
Although a large section of jewellers across India has called off the strike that began on March 1, there is ample inventory with them, which will reduce the necessity of imported gold.
“Gold import is unlikely to cross 50 tonnes this month, compared to 85 tonnes in April 2015. Shops remained closed for 42 days, of which 12 days are in April. Import will be much less,” said Bachhraj Bamlawa, director, All India Gems & Jewellery Trade Federation.
Bamalwa said, not all jewellers reopened their shops, so the demand for bullion is not much now. “The retail chains have opened but some local jewellers and wholesalers have not resumed work till now,” he said.
In March, owing to the strike, India imported 18 tonnes of gold, compared to 125 tonnes a year ago.
“Jewellers have their stocks too, which they want to offload first,” a senior official of the India Bullion & Jewellers Association said.
Gold discounts due to fall in global prices are now receding as some jewellers are now replenishing inventory after opening shops for the upcoming Akshay Tritiya. Dealers are offering discounts of up to $20 per ounce in the official market and in the grey market the discount is $35 per ounce.
In India, gold price is hovering around .₹ 29,200 per 10 gm. Himanshu Gupta, senior market strategist at Karvy Commodities said that the resumption of Indian market pushed down price of gold to $1,234 per ounce from $1260 per ounce on Thursday.