HYDERABAD, India Aug 25 (Reuters) – The State Trading
Corporation’s (STC) gold imports are likely to decline by 20
percent to 80 tonnes in the 12 months to March 2013 as higher
prices curb demand, the head of the operation run by the Indian
government said on Saturday.
High inflation has hit consumers’ disposable income and a 4
percent import duty has increased gold prices, triggering a
sharp decline in gold imports into India, the world’s biggest
buyer of bullion.
“There is overall slowing down and people are very conscious
of prices,” said N.K. Mathur, chairman and managing director of
STC, which gets 70 percent of its business from gold.
Gold prices on the Multi Commodity Exchange struck a
contract high of 30,899 rupees per 10 grams this week backed by
strong overseas leads and a weaker rupee.
(Reporting by Siddesh Mayenkar; Editing by Alison Williams)
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