Gold Imports Fall by 50% in September After August Surge

Chennai: The government, worried about the widening trade deficit, can breathe a sigh of relief as the gold imports in September are estimated to have dropped by half compared to August.

After record-high imports of 150 tonnes valued Rs 10.06 billion in August, which was one of the main reasons behind the widening of the trade deficit to Rs 29.65 billion, there could be some respite as gold imports in September are estimated to have dropped by almost half below 80 tonnes. According to highly-placed trade sources, the gold imported till now in the month and the contracts entered for the remaining days would aggregate to less than 80 tonnes, which is in the usual range of monthly imports.

Aggressive stocking up of inventory for the festive season in August and a spurt in international gold prices in September have dampened demand.

The country imported 150 tonnes of gold in August after the government reduced the import duty for the metal and the international prices went into a correction. According to Chirag Sheth, principal consultant of Metal Focus, the import volumes were 74 per cent higher than August 2023, which imported 86 tonnes, and 52 per cent higher than July, which saw imports of 99 tonnes.

In value terms, gold imports more than doubled to Rs 10.06 billion against USD 4.93 billion in August 2023. It saw a three-fold rise compared to July. END