Gold imports in March up by 471%
According to a government source, during March, India’s gold imports increased by 471% year over year (yoy), with total import of 160 tonnes during the month. This has been due to reduction in import duties and correction in prices from high levels. In February’21, India’s import duties on gold were reduced from 12.5% to 10.75% with the aim to push retail demand and restrain smuggling into the South Asian country. In March, the local gold future reached the level of Rs. 43,320 per 10 grams, lowest in the last one-year.
The rise in imports is expected to further lower the gold prices which have already corrected by around 17% from the price of $2,072 in August 2020. “Many consumers had postponed buying due to higher prices. They rushed to buy after prices corrected sharply,” said Harshad Ajmera, owner of JJ Gold House. However, in April’21, imports of gold might not match the standard of March, with import expected to be below 100 tonnes as jewelers are afraid that government could impose lockdown to control increasing corona virus infections.