Gold imports are likely to decline 41 per cent to 500 tonnes this financial year on account of curbs imposed by the government, MMTC chairman and managing director D S Dhesi said on Wednesday.
"Gold imports have come down so far. I think the country's overall imports would be 500 tonnes in 2013-14 as against 850 tonnes last year," Mr Dhesi said.
Around 400 tonnes have already been imported in the first six months of the current fiscal year, he said, adding that a maximum of another 100 tonnes would be imported this year.
Gold imports would be lower as there are government restrictions on its in-bound shipments, the MMTC chief said. Sluggish demand due to high domestic prices compared to global rates is also a reason, he added.
Gold is being sold at a high premium due to supply crunch following government restrictions on imports, according to traders. India, the world's largest gold consumer, meets almost its entire demand through imports.
Mr Dhesi said MMTC would cut volume of gold imports for domestic consumption and enhance supply for export units to boost shipments.
"We will import 30 per cent less gold for local consumption. But we will import more to meet export demand. We are targeting to supply about 3,000 kg of gold to export units this fiscal, as against 2,200 kg last year," he said.
Stating that the existing restrictions on gold imports were effective, he said there was no need for further tighten inbound shipments of gold.
The Finance Ministry had directed MMTC to focus on supplying gold to export units. So far, 1,700 kg of gold has been supplied to these units, Mr Dhesi said.
The government had raised import duty on gold to 10 per cent from 8 per cent to address widening current account deficit.
Traders were also asked to export 20 per cent of imported gold with value-addition. Besides, imports of coins and bars were banned.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
