Gold imports likely to drop sharply to 50-60 tonnes in October

India's gold imports are expected to nearly halve to 50-60 tonnes this month from their September level as jewellers have adequately stocked up for the festive and wedding seasons, according to an industry body.

"In October, we expect the gold imports to be 50-60 tonne. In September, jewellers had bought enough stock to cater to the demand during festival and wedding seasons," All India Gems & Jewellery Trade Federation Director Bachhraj Bamalwa told PTI here today. India, the second biggest consumer of the yellow metal globally, imported 95 tonnes of gold in September ahead of festivals like `Akshaya Tritiya' and Diwali, which see huge rush of consumers at jewellery outlets across the country.

The consumer sentiment was positive during the festivals and sale of jewellery, coins and bars rose by nearly 30 per cent, he said, adding the decline in prices also boosted the demand. The festivals are immediately followed by the marriage season, which will continue till December 15, Bamalwa added. "There are a lot of marriages scheduled at the end of November, we expect demand to begin in another week or so," Bamalwa said.

Last year, the demand for gold was very low due to the restrictions imposed by the government to control the current account deficit (CAD) - the difference between outflow and inflow of foreign exchange. The duty was increased to 10% from 2% and norms under 80:20 scheme, which said 80% of the gold imported should be exported, were tightened.

Meanwhile, in November the gold imports are expected to be similar to this month at about 60 tonne, he added. Gold prices dropped on Thursday and ended at around Rs 26,700 per 10 gm in major markets.