Indian Gold Traders Strike Against “Crippling” Gold Import Curbs

Mineweb reported that on Monday, in response to a call from the Bombay Bullion Association and India Bullion and Jewellers Association, retailers and jewelers in India went on strike to protest the restrictions the government has placed on inbound gold shipments.

As quoted in the market news:

Prithviraj Kothari, director of the Association said they had compiled a list of demands that included reduction of customs duty on gold, from 10% to 2%; revision of the 20:80 import scheme for exporters; and the relaxation of  ‘Know Your Customer’ norms, which had severely brought down sales at retailers.

He added that the 10% customs duty on gold and the 20:80 import rule by the Reserve Bank of India had led to a severe shortage of gold in the domestic markets and sharply pushed up premiums over international prices, making it unviable for many bullion traders to carry on normal trade.

‘Bullion imports have come down drastically. The government should now revisit its import curbs, since it is crippling the industry,’ said Kothari.

Click here to read the full Mineweb report.