Gold imports in Q1 set to fall as jewellers strike work

The import of gold during the first quarter of the year is set to fall with jewellers continuing with their strike demanding rollback of excise duty proposed in the Budget.

"March is usually a lean period for jewellery business. However, this year there were important festivals like 'Gudi Padwa', considered auspicious for purchasing gold. Jewellers incurred huge loss during this period," Bombay Bullion Association President Prithivraj Kothari said. Also Read: Govt slashes import tariff value of gold to USD 539/10gm
The loss in sales due to the strike over the last fortnight was more than Rs 10,000 crore, he said.
With shutters down, there was no business which led to decline in gold imports during March. It is likely to be less than 125 tonne in the January-March quarter compared to 283 tonne in the corresponding period in 2011, a drop by 56%, he said.
The total gold imported in India in 2011 was 969 tonnes, according to the World Gold Council. India is the world's largest importer and consumer of the precious metal.
Jewellers have been on an indefinite strike from March 17 to protest the budget proposal to levy excise on unbranded jewellery and hike in customs duty to four per cent from 2%.