The gold entrepreneurs have been using gold smuggled through the routes of the Tarai districts.
The entrepreneurs said that they are compelled to use the illegally imported gold after they did not get the gold through commercial banks.
According to a trader the gold is illegally imported though the China border Khasa and sold out in the Tarai and traders here purchase it from Tarai districts.
He said the hallmark gold cannot be purchased directly, but only in the form of jewelries or worked.
The gold imported by commercial banks does not meet the rising demand of the local customers, said Bimal Dhamala, chairman of Nepal Gold and Silver Dealers Association, Panchthar.
“Around 60 per cent of gold imported legally is consumed in Kathmandu alone while the 40 per cent goes to other urban cities,” said Dhamala.
Dhamala said five kilograms of gold can meet the demand of local customers but even this amount of gold does not reach the eastern hill districts.
Even though the gold price has come down heavily in the international market, the customers in Taplejung district are compelled to buy gold by paying over Rs 6,000 than the existing price.
While the bullion sold out for less than Rs 47,500 per tola in Kathmandu, it is being traded for over Rs 53,000 in Taplejung.
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