Gold imports fall to 5-year low in Gujarat.

AHMEDABAD: Gold imports in 2013-14 were the lowest in the past five years. Figures with Gujarat State Export Cargo Ltd (GSECL) indicate that in the April 2013 to February 2014 period, imports of the yellow metal in the state did not touch even 90 metric tonnes (MT).

Experts blame this decline on the economic slowdown, restrictions on gold imports, high gold prices and fall in demand.

Latest GSECL figures indicate that only 87 MT of gold were imported from April 2013 to February 2014 compared to 149 MT in the same period in 2012-13. This indicates a fall of 53.23%. In February 2014, 1.25 MT of gold was imported compared to 24.83 MT in February 2013. A little more than 5 MT of gold has made its way into the state's markets with 4.57 MT imports in January 2014. Half the gold imported in February 2014 was brought by State Trading Corporation (500 tonnes).

In a bid to control the current account deficit, the central government had put restrictions on gold imports which led to a sharp fall in imports of the precious metal. In September 2013, the Centre eased the restrictions and the RBI introduced the 80:20 scheme. Under this scheme, importers must re-export 20% of gold brought in by them.

"Most of gold imports took place before the restrictions came into effect. After June, the imports have come down to a trickle in the state," said Monal Thakkar, president, Amrapali Industries.

Thakkar further said that the premium on gold in the international market had come down from 110 dollar to 60 dollar. "Yet it has not been able to revive imports in the country," said Thakkar. Gold prices remained in the Rs 28,000 to Rs 31,000 category during this period which also saw consumers shifting towards silver.

The record low in gold imports in 2013-14 is also due to the fact that over 75 MT of gold had been imported until June 2013 before restrictions came into effect.

GSECL, which handles the cargo at city's Sardar Vallabhbhai International Airport, has also set up a facility for importers to store gold in order to make the most of 80:20 scheme. But that too has not yielded the expected results.

Silver touches 1400 MT

Restrictions on gold imports and a resultant shift in customer preference, has led to a record growth in silver imports. According to the latest data available, silver imports crossed 1400 metric tonne (MT) in 2013-14, the highest in the past five years. According to latest figures, 1425 MT of silver were imported from April 2013 to February 2014 compared to 458 MT in the same period in 2012-13, recording a growth of 210.86%. On the flipside, in the month of February, imports of silver were down by more than 60% at 24.43 MT compared to 80.86 MT in February 2013. This was due to the recent increase in import duty on silver. Experts believe that restrictions on gold and increased industry usage of silver have led to rise in demand of silver.

Source : timesofindia.indiatimes.com