This refers to the report “300% jump in gold export industry questions data” (May 13). What is more disturbing than the possible discrepancy in the export figures for gold is our continual need to import gold despite a handsome domestic stock of over 18,000 tonnes. This is a direct draft on our precious forex funds. It is unfortunate that the government has made no perceivable effort to discourage the accumulation of “ornament gold” in households, which is partly responsible for financial loss in middle-class families and, to some extent, dowry and security problems.
The import and accumulation of huge quantities of gold in the form of jewellery has other social implications like the under-utilisation of financial resources for productive use, and the pledging of assets for raising funds, which ultimately help only the money lender. One way to check the current rise in imports, which is not commensurate with exports of gold products, is to link the quantum of imports to the past few years’ export record. Import of gold for pharmaceutical and other essential purposes could be outside such limits.
M G Warrier, Thiruvananthapuram
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