NEW DELHI: India’s gold imports were $9.4-9.6 billion, or around 210 tonnes, in the first six months of 2016. The import bill was down over 40 per cent from the same period a year ago and tonnage was down almost by half. January saw import of 75 tonnes of gold, after which it has been averaging 27-30 tonnes a month. Akshaya Tritiya in May also failed to improve demand.
Analysts said of the overall imports, 15-20 tonnes were meant for re-export every month. March was the worst month for gold imports because of a strike by jewellers over the imposition of an excise duty. Since then, 15-20 tonnes of gold was arriving in the country through unofficial routes.
Rising prices and unofficial flows have resulted in a discount on gold in the spot market of $40-50 per oz, or Rs 800-1,100 per 10 gm, to the cost of import. Gold prices fell below Rs 25,000 per 10 gm in December and were now quoting at Rs 31,260 per 10 gm on Monday.
Gold was available at an unprecedented discount of $100 per oz in the Ahmedabad cash market last Friday. The high discount in the spot market and the even higher discount in the cash market have created a situation where four prices for gold were quoted. This afternoon, when the price of gold was $1,360 per oz, the cost of import for banks, including duty, was Rs 32,240 per 10 gm. On the MCX, the August futures were quoted at Rs 31,660 per 10 gm, at a discount of $30 per oz to the cost of import.
