Commodity Online
MUMBAI : Bombay Bullion Association on Thursday said India’s gold imports witnessed a decline in December mainly on lack of demand in the country.

Gold imports dropped to 3 metric tons last month, said BBA president Suresh Hundia.

Demand for silver also waned during the Christmas and New Year holiday season, and banks are saddled with around 300 tons of silver due to lack of demand, he added.

Last year, India imported 16 tons in December, which comes in the middle of the busy marriage season.

Following a slump in gold and jewellery business in India, the India government is mulling a plan to ease gold import norms to allow more agencies to import the yellow metal.

Current norms as well as the limited number of institutions and banks who can import gold is hurting India’s gold jewellery exports especially at the time of meltdown. Surat, India’s headquarters of diamond and jewellery trade, is suffering big losses in the trade due to the meltdown.

As per Gems and Jewellery Export Promotion Council (GJEPC) exports of gold jewellery from Domestic Tariff Area (DTA) during April–September 2008 were at $ 1.02 billion, a decline of 17% as compared to $ 1.25 billion in corresponding period of previous year.

At present, only around 30 nominated agencies and banks are allowed to import gold. These include government institutions like State Trading Corporation of India, MMTC Ltd, Handicraft and Handloom Export Corporation as well as major banks like State Bank Of India, Punjab National Bank, ICICI Bank, HDFC, Bank of Nova Scotia, Canara Bank, Allahabad Bank, Bank of India, UTI Bank and Dena Bank.

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