MUMBAI, MAY 20: Indian gold demand in the first quarter of 1999 was 24 per cent lower than in the corresponding period of the previous year, according to the figures released by the World Gold Council (WGC) here today.The council attributed the fall in demand to domestic economic slowdown, sharp increases in basic consumer commodity prices and the effect of the rise in domestic gold price following the depreciation of the rupee in early 1998.Official gold imports into the country in the first three months of the calendar year also registered a drop of 74 tonnes to 127 tonnes in comparison to imports in the same period last year."The removal of import restrictions at the end of 1997 saw gold entering the country through official channels as smuggling became less lucrative. As a consequence of this, official gold imports in the early part of 1998 witnessed a tremendous surge," WGC financial manager Derrick Machado said adding that the decline this year should be viewed in this context.The council,however, expects an increase in demand in the remaining period of the year on expectations of rise in agricultural incomes and that a substantial part of this demand would be met through informal imports from Dubai.The increase in import duty from Rs 250 to Rs 400 per 10 grams has raised the premium over international prices from 6.8 per cent in December to around 10 per cent in March.
