Finmin considering banning 24-carat gold jewellery export

In a move that could help control the round-tripping of gold and misuse of bank funds meant for exports, the government is considering banning the export of 24-carat jewellery. In India 24-carat gold is used mostly in coins and bars. Globally too, except China, 24-carat jewellery is not in use. But certainFinmin considering banning 24-carat gold jewellery export
 export houses in India export 24-carat jewellery, in which hardly any value addition is done except refining and casting gold in jewellery form. It is then sent to Gulf countries and re-imported in the form of gold. These export houses, though they are handful in number, use this route to show high exports, thus keeping their export house status intact, and use low-cost bank credit meant for them. The finance ministry is, however, concerned at this. Such round tripping had once been estimated at more than 100 tonnes, and jewellery exports as a proportion of gems and jewellery exports are not much. But being pure in gold jewellery without the use of precious stones, this has a sizable stake. Commodity Trading Tips