Page 10 - Bullion World Issue 6 October 2021

Bullion World | Issue 06 | October 2021

was very good. For this year since the the scrap volumes are getting higher in
vaccination started the demand has various markets.
also picked up, the marriage backlogs
are also opening up so the demand will As the custom duty got
eventually pick up. So the spark demand revised again, what do you
in Gold and Silver are due to the events have to say on that?
which are on queue which were on Haresh Acharya: Government from
hold due to lockdown. So since there is 2013 started the custom duty and
relaxation in public gathering the events increased to 12.5% so this was a regular
have started to take place. affair for every year. But, this year they
have given a little relaxation to the
Karthick Kappuraj: When the industry. It’s definitely a good deed.
agricultural season begins there will be
sale of jewellery for liquidity purpose and Karthick Kappuraj: Overall, a
when the harvest is good, there will be reduction in customs duty to around
purchase of gold. In some cases, where 6% in a phased manner will be apt
people want to buy new gold jewellery enough to ensure total annihilation of
in exchange for their old jewellery, then smuggled goods and the government
there will be scrap inflow. During this will also stand to gain from the increased
pandemic, there was no distress selling business volumes of the organized
and scrap flow. This shows that the sector and to a certain extent, from
economy did very well to sustain itself the unorganized sector also, to ensure
and gold did not undersell. However, that this Gold and Jewellery segment
Mr. Vipin Raina one cannot say that the economy is bad is a clean slate. While on this note, it
MMTC-PAMP when there is large flow of scrap. It can becomes imperative that we thank
be understood that the economy is in our Finance Minister for the kind
fact doing good because there is a lot of consideration in reducing the duty from
exchange of old gold and people going 12.5% to 10% during the last budget
in for few more sovereigns than the old presented.
gold weight.
Viral Lodhiya: It was a good step by
Vipin Raina: Scrap flow was on lower the government because the overall tax
side between April and June, but has paid on Gold is already high so it was a
pick-up from second half July onward. burden on the consumers, the demand
of Gold increased drastically as the duty
Viral Lodhiya: We have a scrap centre was slashed. The MCX prices were down
in Delhi and Coimbatore, there we directly by 2% as the duty decreased
are getting good volumes, and we are by the Government. Other than the
getting regular scrap inflows. Over all duty part, the Government is becoming
scrap markets in India specially the major very strict to bring Gold into a regulated
locations which are into Gold business, market. Because their investigations and
they have regular scrap flows. But the port controls everything is coming quite
thing is all the major cities like, Trichur, strict. So in coming years we expect a
Chennai or Coimbatore there are a lot of complete regulated Gold market in India.
local refineries and their major business
is melting the scrap. So scrap from How was the Dore Flow in
various regions comes and get refined in the recent past?
these local refineries because it is cost Karthick Kappuraj: Dore flow has
effective. So If we try to set up something decreased as compared to the 2014-15-
in Kerela it would be a tough job because 16 flow. The supply of Dore bars has a
the competitive prices are very high. very significant reduction although a little
So we are already having an idea that cheaper by half percent compared to the

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