Precious Metals
D A I L Y B U Z Z
GOLD
Gold and silver imports declined 40 percent to USD 33.46 billion in 2013-14 mainly due to restrictions imposed by the government on inbound shipments of the precious metal to narrow the current account deficit.Imports of gold and silver in 2012-13 stood at USD 55.79 billion.
In March, the imports of the precious metals were down by 17.27 percent to USD 27.58 billion from USD 33.33 billion in the same month previous year.
Lower imports helped to narrow the trade deficit to USD 138.59 billion in the previous fiscal.
India's current account deficit (CAD), which is the excess of foreign exchange outflows over inflows, touched a historic high of 4.8 percent of GDP in 2012-13, mainly due to rising imports of petroleum products and gold.A high CAD puts pressure on the rupee, which in turn makes imports expensive and fuels inflation.Recently, Finance minister P Chidambaram projected CAD during 2013-14 at about 35 billion, or about 2 percent of GDP, down from USD 88.2 billion, or 4.8 percent of GDP, in 2012-13.
The government had increased customs duty on gold to 10 percent and banned import of gold
coins and medallions, while the RBI linked imports of the metal to exports.India is the largest
importer of gold, which is mainly utilised to meet the demand of the jewellery industry. Imports
stood at about 830 tonnes in 2012-13.
Agro Outlook
D A I L Y B U Z Z
CARDAMOM
Cardamom prices rose by 0.67 per cent to Rs 940.70 per kg in futures trade today as speculators created fresh positions after demand picked-up in the spot market against restricted supplies from producing belts.
At the Multi Commodity Exchange, cardamom for delivery in June rose by Rs 6.30, or 0.67 per cent to Rs 940.70 per kg in business turnover of 45 lots.
Likewise, the spice for delivery in May edged higher by Rs 5.20, or 0.57 per cent to Rs 914.70 per kg in 219 lots.
Analysts said besides pick-up in demand in the spot market, restricted supplies from producing regions mainly led to rise in cardamom prices at futures trade.
