A slump in gold prices this week had stirred the consumer demand in India ahead of Diwali but imports are unlikely to jump with exporters reeling under a liquidity crunch demanding cash-on-delivery.
Gold prices have fallen over $100 an ounce, or 12 per cent during the current week. Towards the end of last week, the benchmark gold futures on Comex, the electronic trading division of the New York Mercantile Exchange touched a low of $693 an ounce.
“Import demand is showing signs of revival. However, it may be impacted as overseas exporters are demanding payment as soon as we accept delivery,” said Haresh Acharya, director, Parker Agrochem Exports, Ahmedabad, one of the largest private sector bullion traders in India.
Earlier, exporters used to give 2-6 weeks time to make payments after delivery of consignments.