Gold imports seen 40% down in Sep-Dec

The import of gold is likely to decline by 40 per cent in the last four months of the year to about 200 tonnes due to fall in demand for the yellow metal amid high prices and poor monsoon, Bombay Bullion Association said on Tuesday.

"Import of the precious metal is not very encouraging and we expect about 40 per cent drop in shipments into the country at 200 tonnes in the September-December period. The rising prices of the metal, monsoon deficit and fewer wedding dates this year will mainly restrict the demand and hence the imports," BBA President Prithviraj Kothari said.

As 70 per cent of gold consumption takes place in the rural market in physical form, poor monsoon will hurt incomes of farmers and consequently affect the demand, he said, adding, "And thus overall imports this year will be restricted to 700 odd tonnes against 969 tonnes last year".