Gold imports are likely to dip by about 50 per cent in May to 50-60 tonnes as weakening rupee and higher duties has led to steep rise in price of the precious metal,an industry body said today.
India,the world’s biggest gold consumer,had imported 102 tonnes of gold in the same period last year.
“We are expecting gold purchases to be down in the current month at 50-60 tonnes,” Bombay Bullion Association President Prithviraj Kothari said.
Demand for gold has been sluggish in May as prices increased substantially due to doubling of import duty on the precious metal to 4 per cent and falling rupee,he said.
That apart,there has not been much appetite for gold in May due to less marriages,he added.
In rupee terms,gold prices are currenly ruling over Rs 29,000 per ten grams in the Mumbai bullion market even as international prices remained lower.
Kothari further said that the country’s overall gold imports in the 2012-13 fiscal are expected to decline to 750-800 tonnes,as against 969 tonnes last year.
On growing trend of recycling of gold,he said that there has been an increase in sale of gold scrap because of high domestic rates.
As much as 300-400 tonnes could be recycled in India in 2012-13 fiscal,as compared to 130 tonnes last year,he added.