Deficit Wor­ries may Ease with 41% likely Fall in Gold Im­port

Shop clo­sure due to strike leaves jewellers with am­ple in­ven­tory

The Economic Times - - Commodities Plus - Su­tanuka.Ghosal @times­

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.

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