MUMBAI : High gold price is severely impacting the import of the yellow metal to India, one of the largest bullion markets in the world. Gold imports by India that used to be around 700-800 tonnes every year since 1998 have drastically come down by half.
Gold imports have plunged to the lowest mark in 2009. According to the latest statistics from the Bombay Bullion Association, gold imports by India in 2009 will stand around 370 tonnes, the lowest in one decade.
“Gold imports by India have been hit hard by high prices of the yellow metal. In fact, gold demand in India has fallen drastically thanks to the skyrocketing prices of gold. We expect gold imports to stand around 370 tonnes this year,” Bombay Bullion Association (BBA) president Suresh Hundia said.
Hundia feels that gold imports by India can now go up only if people accept the fact that gold price is on a high, and they come to shop again at high prices. “We are not sure if gold imports will improve in the coming months,” he added.
BBA data says gold imports in India in 2008 fell to 410 tonnes compared with 750 tonnes in 2007.
India’s gold demand has remained in the average range of 600-800 tonnes. Only in the lean economic period in global economies and specially in India during 2002 and 2003, gold imports slumped to around 500-550 tonnes.
Source : Commodity Online