BHUBANESWAR: Union Finance minister Nirmala Sitharaman’s announcement of reduction of customs duty on gold, silver and platinum and the subsequent sharp fall in price of the precious metals has left both jewellers and gold buyers of the state smiling.
Immediately after the announcement on reduction of customs duty on gold and silver, the price of 10 gram of 22 carat gold came down by Rs 3,500 in the state.
Vice-president of Odisha Jewellers Association Sourav Roy informed that in the morning, 10 gram of gold was selling at Rs 67,450 and after the budget announcement, the price came down to around Rs 64,000.
The Finance minister announced a reduction of customs duty for both the metals from 15 per cent to 6 per cent. “This reduction includes a decrease in the basic customs duty (BCD) from 10 per cent to 5 per cent and the agricultural infrastructure development cess (AIDC) from 5 per cent to 1 per cent. The impact of the Finance minister’s announcement was quick to reflect on the market,” Roy said.
Khimji group director Mitesh Khimji said it was a long-standing demand of the jewellers of Odisha and other states. “By this move, the Centre has killed the gray market for jewellery in one go. While this would mean some revenue loss for both the government and jewellers, it will be balanced by sales through official channels and a renewed interest among buyers following the sharp decline in prices,” Khimji said.
The price drop is for the existing gold stock with the jewellers. He further said when the fresh stock arrives on Wednesday, the price would further drop by Rs 1,000.
This year, gold sales had been subdued due to the elections. The price has been hovering around Rs 68,000 to Rs 67,000 per 10 gram of 22 carat gold.
Khimji said the sales are expected to go up in the festive months ahead.