India's FY20 Gold Imports Hit a Decade-Low

The trade expects slow return to normalcy, even after the withdrawal of lockdown after two weeks.

SEATTLE (Scrap Monster):  The gold imports by India recorded substantial decline during the financial year FY 20.

The imports during the financial year were estimated at 559.6 tonnes, as compared with the imports of 775.4 tonnes in FY 19. The imports hit the lowest level in at least a decade, sources said. The demand remained more or less muted except for the June quarter. The demand declined the most to 83.6 tonnes in the September quarter.

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In accordance with GFMS data, the gold imports in March 2020 is likely to drop to historic low level, mainly on account of near-zero demand due to shutdown of retail outlets as part of the 21-day national lockdown announced by the government. As per estimates, the monthly imports are likely to total only around 18 tonnes. This compares with 72.5 tonnes imported during the same month a year before.

The trade expects slow return to normalcy, even after the withdrawal of lockdown after two weeks. A notable revival in gold demand is expected only by July, until then the gold demand is expected to remain muted.

Meantime, PR Somasundaram, MD-India, World Gold Council said that gold is likely to have a good run in the next few years. Currently, the gold jewellery demand is nearly nil, he added.

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