Dealers are importing gold through illegal channel from India to maintain supply in the domestic market that is experiencing shortage of the yellow metal for the last couple of months due to the government policy of restricting gold imports. [break]
“Due to shortage of gold in the market, dealers are fixing the price of yellow metal Rs 700 to Rs 800 per 10 grams more as compared to price on normal times,” said Tej Ratna Shakya, president of Nepal Gold and Silver Dealers´ Association.
He also said the consumers are bearing the brunt of the delay in formulating new policy on gold imports as the dealers are fixing price higher than what would have been on normal days. “The yellow metal might be further expensive in the days to come if the situation persists,” he added.
Gold was sold for Rs 27,650 per 10 gram on Monday. The price would have been just Rs 27,000 had the price been fixed as per the international price.
Shakya said the average daily demand of gold in the domestic market is around 10 kg and about 30 percent of it is supplemented through recycling.
Gold dealers have been demanding with the government to allow imports only through hand carry as per the requirement of domestic market.
Responding to the Indian budget that raised import duty on gold, the government raised duty on gold imports to Rs 470 per 10 gram about a couple of weeks before to discourage cross country smuggling of gold due to differences in price.
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