GJF Calls for Gold Restrictions

All India Gems and Jewellery Trade Federation (GJF) has urged its members to curb sales of gold coins and bars in an effort to prevent the government from imposing import restrictions on gold after an increase in inbound shipments.

In a statement, GJF said sales of gold coins and bars should be curbed after reaching around 300 tonnes in 2013. GJF has estimated India’s total imports in 2014 at about 850 tonnes of which the demand for coins/bars would remain around 200-250 tonnes.

The trade body has also urged the government to reduce the duty on gold to 2 per cent to make smuggling unprofitable. GJF is expecting gold imports in October to be around 108 tonnes as compared with 95 tonnes a month earlier.

The federation had requested a curb on sales of gold coins and bars a year ago, when total imports were around 900 tonnes.Indian government is likely to announce some new measures to curb gold imports which might include restrictions on a group of private trading firms.

Struggling with a high trade deficit, the government in 2013 raised its gold import duty to a record 10 per cent and made it mandatory to export a fifth of all bullion imports.

The World Gold Council has estimated about 200 tonnes of gold will be smuggled into India in 2014, versus 150-200 tonnes in 2013.