Gold imports fall 17% in April-October to $24 billion: Centre

The import of the yellow metal declined 17.38% to about $24 billion during April-October due to a fall in demand, according to the data of the commerce ministry.

The gold import stood at $29 billion in the corresponding period last year, the ministry added.

Silver imports saw a dip of 34.80% to $585 million. Cumulatively, the imports, however, jumped to $4.8 billion as against $1.52 billion from April-October 2021-22.

The merchandise trade deficit for April-October 2022 was estimated at $173.46 billion as against $94.16 billion in the year-ago period.

However, gems and jewellery exports rose marginally by 1.81% to $24 billion in April-October 2022.

According to industry experts, demand will start picking up in January 2023.

This month, the Centre rose the base import prices of gold and silver as prices rose in the world market.

As per the government’s notification,”Gold, in any form, in respect of which the benefit of entries at serial number 356 of the Notification No. 50/2017-Customs dated 30.06.2017 is availed at 570 per 10 grams,” the notification read.

“Silver, in any form, in respect of which the benefit of entries at serial number 357 of the Notification No. 50/2017-Customs dated 30.06.2017 is availed at 702 per kilogram,” the notification added.

Recently, the World Gold Council projected that gold consumption from October to December could fall by around a quarter from a year ago as inflation depresses rural demand.

Falling demand for gold imports could also help to narrow India’s trade deficit and support the rupee.

Two-thirds of India’s gold demand usually comes from rural areas, where jewellery is a traditional store of wealth.

India’s demand for gold rose 14% from a year ago to 191.7 tonnes in the quarter through September as festivals drove jewellery sales.

In the December quarter, India’s gold demand could fall to around 250 tonnes from 343.9 tonnes a year ago, according to Somasundaram PR, regional chief executive officer of WGC’s Indian operations.

The drop could bring down India’s total gold consumption in 2022 to around 750 tonnes, down 6% from last year’s 797.3 tonnes, he said.