India cannot afford high levels of gold imports and may review its import policy, Finance Minister P. Chidambaram said on Monday, after imports of precious metals jumped more than 150 per cent in April.
India, the world's biggest buyer of gold, hiked its import duty to 6 per cent in January in an attempt to limit purchases and rein in a record high current account deficit. Gold is the second biggest import item after crude oil.
Gold prices on the Multi Commodity Exchange rose to a session high of Rs 27,015 per 10 grams after Chidambaram's remarks, before easing back to trade 0.63 per cent higher at Rs 26,980.
On May 13, the RBI introduced more restrictions on purchases for jewellers and banks as it also weighs in to curb imports.
Copyright: Thomson Reuters 2013
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