Gold imports reduced by 90 percent in March due to high prices

Mumbai: Government sources said as a result of higher prices, gold imports in March were 90 per cent lower than in February. March imports are being seen the lowest since the Corona period. Banks have reduced gold imports due to high global prices.

The rise in global gold prices will remain limited due to lower imports by India. Globally, gold prices reached an all-time high of $2025 an ounce in the current month.

Reduction in gold imports will not only reduce pressure on the Indian rupee but will also help in keeping the trade deficit under control.

India's gold import in March is expected to be 10 to 11 tonnes as compared to 110 tonnes in February.

During the Corona period, when flight services were closed due to lockdown and markets were closed, there was a huge decline in gold imports.

Import duty collection through gold has remained unchanged in the current month, indicating that gold imports remain low. Sources also said that increase in gold smuggling due to high prices cannot be ruled out.

Sources in an importing bank said that demand for gold from jewelers remained weak in March. As a result of higher global prices, domestically also gold prices were seen touching Rs 66,943 per ten grams.

Jewelers usually start stocking in March in view of the wedding season in April-May, due to which gold imports are higher in March, but in the current year, gold imports in March are less.