Uniform Prices
'One nation one rate' for gold may remain a pipe dream, says expert
This story was originally published at 17:52 IST on 18 July 2024
Register to read our real-time news.Informist, Thursday, Jul 18, 2024
MUMBAI – The clamour from a section of the industry for 'one nation one rate' for gold notwithstanding, the chances of it becoming a reality are dim, an industry expert said. The industry needs to overcome operational challenges as the global price of gold fluctuates continuously and costs vary from jeweller to jeweller, the expert said.
"It is virtually impossible to have the same rate for a country of India’s size," Surendra Mehta, national secretary at India Bullion and Jewellers Association told Informist. "There are issues like buying costs, logistic costs, insurance costs, and integrated goods and services tax, all of which add to the final cost of the price", Mehta said.
Mehta said the cost of gold will be lower near places of import. Each jeweller's purchase price will be different and their capacity to offer discounts to buyers will also be different, so no two shops will have the same price.
The Hindu Businessline on Tuesday reported that the Indian Jewellers and Bullion Association of India and All India Gem and Jewellery Domestic Council are in discussions with stakeholders to implement a ‘one nation, one rate’ policy for gold across the country.
The country meets almost 99.99% of its bullion needs through imports and the precious metal is priced in dollars. India imported 261.7 tn of gold in Jan-May, up 30% on year. India is the second-largest consumer and importer of gold after China, accounting for 16% of the global demand. India imported 734.3 tn of gold in 2023, up 3% from 713.31 tn in 2022. End
US$1 = 83.65 rupees
Reported by Sandeep Sinha
Edited by Saji George Titus
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
