Gold imports in November stable at 100 tonnes

India’s gold imports remained stable at about 100 tonnes in November despite the fall in sales of jewellery due to the cash crunch following demonetisation.

The country had imported about 97 tonnes during October, according to All India Gems and Jewellery Trade Federation (GJF) Director Bacchraj Bamalwa.

“Gold imports were normal during last month at around 100 tonnes. Imports took place to meet wedding demand,” he said.

Asked about the outlook for December, he said that the shipments are expected to halve as wedding season would end mid-December and moreover there is carry-over stock from the last month.

The rural demand is affected due to the prevalent cash crunch following demonetisation of Rs.500 and Rs.1,000 notes , he added.

However, the overall gold imports in the October-December quarter is expected to be about 250 tonnes, which is almost similar to the year-ago period.

Mr. Bamalwa also said that the country’s overall gold imports for the current calendar was likely to decline to 650 tonnes from 850 tonnes last year due to poor sales following the strike by jewellers. The strike lasted two months and protested the government’s decision to impose one per cent excise duty.

GJF Chairman G.V. Sreedhar said, “Imports are likely to be 50 tonnes or even less, which is not surprising looking at the current circumstances.”

Sales were down by up to 80 per cent initially but the situation was improving, he said, adding that sales are happening through the digital mode.

Even unorganised players were using digital platforms, he added.