Slowly, gold import is picking up momentum in India with the Diamond India (DIL), formed by 58 diamond manufacturers for the direct import of rough diamonds, announcing that it will import around 100 kg of gold in July.
DIl is in the process of tying up with overseas suppliers as well as international couriers who have bonded warehouses in the country. Standard Bank will be one of the suppliers. The reason for seeking an RBI licence to import gold directly was to service jewellery exporters in far-flung areas who find it difficult to get gold supplies from banks on time.
Gold is an integral part of diamond jewellery manufacturing and DIL aims to cater to this segment. DIL will sell gold and offer gold loan schemes to jewellers interested in purchasing the metal from it.
Meanwhile, gold imports have declined by over 50 per cent to 17 tonne in May as compared to the month-ago period due to surge in prices following the Euro zone crisis.
During April the imports stood at 34.2 tonnes. Gold prices in May had touched a high of Rs 18,629 per 10 grams, while in the international it went up to 1,248.55 dollar an ounce (28.35 grams).
In April the imports went up mainly due to stockist buying for the marriage season in May. However, the buying declined in May as the prices surged.