New Delhi, May 22 () : Gold imports are to get slightly cheaper as Govt announced a $20 cut in the tariff value of $466 per ten grams. Tariff value is the base price declared by Central Board of Excise and Customs for imported goods to prevent under- invoicing.
In the wake of falling global prices of gold and silver, the government today further cut the import tariff value of gold to $440 per ten grams, while it has not changed at $761 per kg for silver imports.
The tariff value of gold last week was at $466 per ten grams and silver at $761 per kg. Brass scrap, poppy seed and vegetable oil tariff values were not changed. Globally, gold has been seeing a drop in prices.
In Asia, the Singapore market price of one ounce was Rs 1385 and silver at $23. In Delhi for ten gm gold, the price was Rs 27,000 and for one kg silver, it was Rs 44,200.
From January to March this year, imports of 215 tonnes of gold were done. PM’s economic advisory council chief C Rangarajan had asked for gold imports to be limited to 700 tonnes from the present 1000 tonnes.
The World Gold Council says that government measures cannot curb the gold imports due to demand in retail and the desire of Indians to own gold remain unchanged. It is said that price fall has made gold appear even more desirable.
Anything that weakens supply in the market will push the premiums paid locally for gold higher. It is said that the motive of the government in tackling the current account deficit issue will do little to weaken the demand for gold. The council expects gold imports to touch Rs 965 crores in this fiscal.
One-third of the gold is bought by India and around 10% of global stocks in the metal is held by this country rated as the number one consumer of gold in the World.