India to Import Gold in April

By BIMAN MUKHERJI and SWANSY AFONSO

NEW DELHI -- India will import 25 to 30 metric tons of gold in April after no imports in the last two months, the president of the Bombay Bullion Association said Friday.

Suresh Hundia said around 10 tons of gold have already been imported this month.

India, which imports around 700 to 800 tons of gold annually, had virtually halted purchases as consumers weren't willing to buy because of high prices.

But prices have been falling globally as a revival in equities markets has prompted many investors to shift out of gold.

Friday, pure spot gold in Mumbai was quoted at 14,160 rupees ($285) per 10 grams, down sharply from 15,725 rupees/10 grams at the beginning of March.

"Although there has been some improvement in physical demand compared with a month ago, it is still around 50% below that of last year," said Daman Prakash, director with trading house MNC Bullion.

He said that initially when prices started declining, big purchases were witnessed, but buying has slowed.

However, with marriages and Akshaya Trithya around the corner, he expects demand to pick up again.

The Hindu festival of Akshaya Trithya, at the end of the month, is considered an auspicious occasion to buy gold, and sales usually surge.

"We could import around 30-35 tons of gold this month," he added.

"Demand from jewelry manufacturers has risen to 150 to 200 kg on a daily basis in Ahmedabad after the fall in prices to 14,000 rupees levels," said Girish Choksi, a bullion trader

At the 15,000 rupees/10 gram level, demand was around 20 kg, he said, adding that as long as prices are below 14,500 rupees, demand will be good.