POLL - India's September Gold Imports Seen Down 8.7 pct y/y.

India's gold imports continued to recover in September from lows hit in June and are expected to double from last month's levels, a Reuters poll showed, as a stronger rupee, higher farm incomes and festivals stoked demand.

The median forecast for gold imports by India -- the world's top consumer of the metal -- in September came in at 36.25 tonnes, down from 39.7 tonnes cited by the Bombay Bullion Association (BBA) last year but up from a near 50 percent drop to 17.5 tonnes seen last month.

 While attributing the year-on-year drop in imports to record high global prices, traders and analysts polled by Reuters however noted that the impact had been softened by a stronger rupee and the promise of higher incomes.

"(Gold) buying is happening and would continue as economic conditions are better this time and farmers would have better disposable income after the good monsoon rains," said Sanjeev Garg, director, LMJ International, a New Delhi-based wholesaler.

 Rural incomes are growing as farmers have planted crops on a bigger area and government agencies have increased the price at which they buy grain directly from farmers, Garg said. Rural India accounts for about 70 percent of the country's gold demand.

Also, the rupee has gained almost 4 percent against the dollar so far this month, on track for its biggest monthly gain in over a year, keeping gold prices steady for Indian buyers as global prices hit record levels of $1,300 an ounce.

Last year, India's purchasing power was severely hit by a drought -- the worst in 37 years.

Source : in.reuters.com