Gold import up 52% in Apr-Aug

Imports rose to $5.5 bn during Apr-Aug 2005 from $3.6 bn in a year ago period.

India's gold import has risen 52 per cent to $5.5 billion during April-August this year from $3.6 billion recorded in the same period last year. Thus, gold's share in the import kitty has gone up to 10.2 per cent from 9.3 per cent.

In the same period, oil imports, the single largest component of the import basket, have increased 36.8 per cent.

The surge in gold imports, in value terms, is being attributed largely to spiraling prices, as fears of a sharp rise in inflation gained ground due to a spurt in crude oil prices in the wake of hurricane Katrina, and depreciation of the rupee against the dollar.

Official figures of gold volumes imported during the period are not available. But market sources said consumption was rising at a fast clip.

The country's gold consumption""including jewellery, investment and industrial demand""has touched a high of 508 tonnes in the first half of the current financial year compared with about 400 tonnes last year, according to World Gold Council Managing Director Sanjiv Agarwal.

"The rise in consumption was driven by gold buying in the April-June period, over 300 tonnes, compared with 180 tonnes in the corresponding period last year. The trend was following the average price at Rs 6,000 per 10 grams," said Agarwal.

Today, at the Muhurat trading in Mumbai, gold trading recorded a high of 800 kg, the highest in two months. Indians are the world's biggest buyers of gold.

However, traders are predicting a 20 per cent fall in gold imports for the whole of this financial year compared with the last one, if prices remain high.