In accordance with the latest official trade data, the gold bullion imports by the country’s Northern state of Gujarat touched lowest levels in six years during the month of April 2014, signaling a weak start for the new financial year 2015.
As per trade figures released yesterday, the total gold imports during the month of April totaled 4.57 metric tonnes (MT). The gold imports plunged by 83.3% when compared with the total gold imports of 27.5 MT during April last year. The gold imports had declined sharply from 193 MT during FY ’13 to 92 MT in FY ’14.
According to trade experts, weakening of currency coupled with inconsistency in gold prices has led to low gold import. The higher tax rates on gold imports, cold response to RBI’s 80:20 scheme and the rising gold premiums in the country have dented the gold imports by bullion traders. The gold import duty of 10% is the highest among Asian countries. Moreover, premiums on gold have surged on the back of anticipated festive season demand.
Meantime, the imports of silver continued to remain strong during the initial month of current fiscal. The silver imports by the state during April 2014 totaled 66.15 MT. The silver imports had hit five-year highs, totaling 1400 MT during FY ’14. The silver imports during the fiscal had surged 193% in comparison with the total imports of 486 MT recorded during FY ’13.