No gold imports by India for second month -trade

MUMBAI, March 31 Tue Mar 31, 2009 3:31pm IST

MUMBAI, March 31 (Reuters) - India imported no gold for the second month in a row in March as high prices dented consumer demand in the world's biggest market for the metal, the head of a trade body said on Tuesday. "Our records are showing zero so far," Suresh Hundia, president of the Bombay Bullion Association (BBA) told Reuters. "Scrap sales have reduced, but demand is not there either."

Imports in February and March last year were 23 tonnes and 21 tonnes respectively.

As local prices of gold climbed to a record high of 16,040 rupees ($315) per 10 grams MAUc1 on Feb. 20, people sold old ornaments raising supply of scrap and keeping imports at bay.

Prices have since eased, but at 15,138 rupees on Tuesday is still seen as too expensive with an economic slowdown further dampening sentiment, Hundia said.

Exports of gold coins slowed down in March as the gap between foreign and local prices narrowed from February, he said.

India has been the world's biggest buyer of gold for years, but imports slumped 48 percent in 2008 to 396 tonnes.

The falling trend has continued this year with imports in January plunging 89 percent from the same month last year to 1.9 tonnes.

For a graphic showing India's monthly gold imports, double click on: here ($1=50.9 rupees) (Reporting by Ruchira Singh; Editing by Ranjit Gangadharan)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage