Wednesday, July 3rd 11:30 AM IST

India's MMTC to open more Gold delivery centres

# MMTC  # Gold jewellery  # India gold  # STC  

The move is expected to increase gold supply to jewellery sector, which was currently facing an acute shortage of gold due to import restrictions imposed by the Reserve Bank of India.

NEW DELHI(BullionStreet): India's largest bullion importer, Minerals and Metals Trading Corporation, better known as MMTC announced plans to expand gold delivery centres across the nation.

According to MMTC director, Anand Trivedi, the public sector firm is planning to open 11 new gold delivery depots across the country, especially in tier II and III cities.

The move is expected to increase gold supply to jewellery sector, which was currently facing an acute shortage of gold due to import restrictions imposed by the Reserve Bank of India.

MMTC at present only supplying gold to consumers in three cities in India including Delhi and Mumbai.

On June 5, the RBI ordered nominated agencies and star trading houses to import gold to supply actual jewellery exporters. RBI has not put any restrictions on import of gold for exporters.

Earlier, banks had been asked to import gold only for supplying to exporters and hence, supply of the yellow metal to domestic jewellers was automatically kept in abeyance.

Out of 950 tonnes of gold imports by the country, jewellery exporters require a meagre 60 tonnes.

According to an estimate, MMTC imported 60 tonnes of gold last year, of which, hardly 2.5 tonnes were supplied to exporters. Jewellery exporters procure half of their gold requirement from Scotiabank.

Gems and jewellery exports fell 16.5 per cent to $2.70 billion in May. In June too, the decline could be in double digits, which raises concerns for India’s burgeoning current account deficit.

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