| The corporation is expecting a total turnover of Rs 500 crore on gold sales this fiscal, as compared to Rs 55 crore during 2003-04. |
| The hike in gold prices had impacted sales in the last fiscal with the Vizag region's gold sales shrinking to about Rs 55 crore. But thanks to the government policy of not offering 365-days credit on LCs (letters of credit) to banks, sales have increased abnormally during the first five months of this fiscal. |
| According to MMTC sources, a couple of big bullion merchants in the city have shifted preference from the State Bank of India to MMTC for purchasing gold. |
| Gold sales at the MMTC Vizag office have risen to around Rs 345 crore during the first five months of the current year as compared to Rs 55 crore during the entire last fiscal. MMTC Vizag office sold 2,181.4 kg of gold worth Rs 96.46 crore in 2001-02 and 1,877.1 kg of gold worth Rs 99.41 crore in 2002-03. |
| "The government has allowed trading houses in the country a one-year credit on LC for gold imports. However, we are taking the money from the local buyers on the spot and earn about 5 to 5.5 percent on it by keeping the money in fixed deposits for a period of one year. On the other hand, we are paying about 3 to 3.5 per cent interest on LCs. In the process, MMTC is gaining about 2 per cent and we are passing this 2 per cent benefit to the local gold buyers. A few big gold customers are, therefore, lining up before MMTC," a senior MMTC official told Business Standard. |
| However, the government has recently reduced the credit on LC facility period from one year to three months. "This is likely to slow down gold sales during the next seven months of the current fiscal," the official said. |
| Gold Rush |
|
Top Section
Explore Business Standard