Bullion dealers worried over 50% drop in imports of gold

KOLKATA: Bullion dealers in India are worried over a 50% drop in official imports of gold in the first six months of 2016, compared with last year. The gap, they say, is now being taken care of by grey market players who are offering gold at a 5% discount from the daily international gold rate.

The trade has flagged off the issue to the finance minister Arun Jaitley and has urged him to reduce the import duty on gold from 10% to 5% to stop the entry of gold through the illegal route.

India had imported 199 tonnes of gold in the first six months of 2016, which is a 50.49% drop compared with 402 tonnes imported in the corresponding period last year.

“While we are sourcing our raw material gold dore (impure gold) at international rates, the finished product — bullion — is coming from unofficial sources and is sold in the country at 2% to 5% discount below LME rates, which is hurting the bullion industry,” said James Jose, secretary, Association of Gold Refiners and Mints.