Welcome To Latest IND >> Fastest World News
Prices of gold and silver in the
domestic market
tanked on Tuesday after the finance minister proposed to drastically cut
import duty
on these precious metals from 15% to 6%.
Since duty cuts will make it cheaper to import these metals, supply through the import channel could increase, leading to drop in prices soon, market players said.
This, in turn, could lead to higher demand for jewellery in the domestic market.
Lower duty would also make it less lucrative to smuggle in gold and silver, they said.
In Mumbai’s
bullion market
, the yellow metal was trading at Rs 69,100 per 10 grams, down from Rs 72,750 on Monday – a fall of nearly Rs 4,000 or about 5% – while the white metal was trading at Rs 85,400 per kg, compared to Rs 88,300 on Monday – down about Rs 3,000 or 3%. The prices of these metals on MCX also fell sharply.
According to Vipul Shah, chairman, Gem & Jewellery Export Promotion Council, the FM’s proposal to reduce custom duties on gold and silver would enhance domestic value addition in jewellery made of precious metals in the country. This would also free up funds worth nearly Rs 1,000 crore blocked for duty payments which in turn would increase working capital of jewellers.
Latest IND