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STC to import 6 tonnes of gold to meet festival demand

NEW DELHI: State-run STC will import six tonnes of gold to boost supply of the precious metal in the domestic market during the festival season, an official said. 

"There is supply crunch (in India) and demand is also higher because of the festival season. ...we have have been allocated to import 6 tonnes of gold in two tranches to meet the rising demand," a senior STC official told PTI. 

The allocation order has been issued by the
Directorate General of Foreign Trade (DGFT), he added. 

Gold in the domestic market is being sold at a high premium as there is a supply crunch due to import curbs imposed by the government. India is the world's largest consumer of gold. 

State Trading CorporationBSE 1.03 % (STC) is one of the gold import agencies in the country. It has been allowed to import the metal with a condition that it will supply 20 per cent of the shipment to exporters. 

STC said said it will import gold worth Rs 15,000 crore this fiscal, the same as last year. 

In order to contain current account deficit, the government has imposed several restrictions on gold imports in the past few months. In August, import duty was raised to 10 per cent from 8 per cent. It also banned import of gold bars, coins and medallions. 

The country has imported 393.68 tonnes of the yellow metal during the April-September period of this year, as per official data.