Gold import bill to dip in FY16

Import bill for 2015-16 now estimated at $31.5 bn, almost 9% lower than 2014-15

Tepid import of gold in the last two months (Feb-March) of this financial year will help the government save some foreign exchange.

The import bill for 2015-16 is now estimated at $31.5 billion, almost nine per cent lower from 2014-15. Import in February was 35-38 tonnes or $1.4 bn. March has begun with marginal import; due to jewellers’ strike to oppose excise duty, the month might end with gold import of $500-700 million (17-23 tonnes).

“The 2015-16 average price is likely to end lower by approximately eight per cent from 2014-15. Most imports were primarily during months when prices were lower,” said Sudheesh Nambiath, lead analyst at GFMS, Thomson Reuters.
 
The February import was half of January's, with a steep $30-50 per ounce discount to the cost of import.