As Im­port Tight­ens, Gold Dore Refin­ing Picks Up

Traders say though de­mand has picked up be­fore wed­ding sea­son, it is still about 20% less com­pared with last year

The Economic Times - - Finance & Commodities - Su­tanuka.Ghosal @times­

Kolkata: Gold refin­ing ac­tiv­ity has picked up in the coun­try, as the gov­ern­ment has tight­ened rules for nom­i­nated agen­cies to im­port the yellow me­tal. Lo­cal re­finer MMTC PAMP, which had been di­vert­ing gold dore (im­pure gold) to PAMP’s refin­ing fa­cil­ity in Switzer­land, has restarted op­er­a­tion at its In­dian fa­cil­ity. “We have stopped di­vert­ing gold dore,” MMTC PAMP MD Ra­jesh Khosla told ET. “The mar­ket has im­proved fol­low­ing gov­ern­ment’s steps to curb cheap im­port of gold by some nom­i­nated agen­cies.” De­mand for gold has picked up as the wed­ding sea­son has star- Gold ted, Khosla said. “Refin­ing had come to a halt when 3% GST on gold was in­tro­duced as cheap gold started en­ter­ing the coun­try from Korea un­der a free trade agree­ment,” he said. Now, it is grad­u­ally re­turn­ing to nor­mal lev­els, he added. De­spite the pickup in gold dore refin­ing now, im­port of this al­loy is ex­pected to fall 15% this fis­cal year from last year’s 200 tonnes. “There was a slow­down in July, Au­gust and Septem­ber which is go­ing to af­fect im­ports of gold dore in the cur­rent fis­cal,” Khosla said. “The sit­u­a­tion is bet­ter than what was it dur­ing Di­wali. Mar­ket is tak­ing time to re­cover. Mar­ket sen­ti­ment is not very bullish now,” said Nitin

Khan­del­wal, chair­man of the All In­dia Gem & Jew­ellery Trade Fed­er­a­tion. James Jose, sec­re­tary of the As­so­ci­a­tion of Gold Re­finer­ies & Mints, said though refin­ing has picked up, there is a need to re­duce im­port duty on gold dore to pro­vide a rea­son­able op­er­at­ing mar­gin of 1% for re­finer­ies, com­pared with 0.65% cur­rently.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.