gold import, may review policy: Finance Minister

NEW DELHI: India cannot afford high levels of gold imports and may review its import policy, Finance Minister P Chidambaram said on Monday, after imports of precious metals jumped more than 150 per cent in April.

India, the world's biggest buyer of gold, hiked its import duty to 6 per cent in January in an attempt to limit purchases and rein in a record high current account deficit. Gold is the second biggest import item after crude oil.

On Sunday the government raised the import tariff value of gold to $459 per 10 grams, while it has been slashed at $737 per kg for silver imports.

Tariff value is the base price on which the customs duty is determined to prevent under-invoicing.

The notification in this regard has been issued by the Central Board of Excise and Customs ( CBEC).

Government has raised the import tariff value of gold as global prices have steadily been going up. On May 31, gold prices in Singapore rose to a two-week high of $1421 per ounce but the metal prices fell later to close at $1388.30.

Gold prices on the Multi Commodity Exchange rose to a session high of Rs 27,015 per 10 grams after Chidambaram's remarks, before easing back to trade 0.63 per cent higher at 26,980 rupees.

On May 13, the RBI introduced more restrictions on purchases for jewellers and banks as it also weighs in to curb imports.

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