Gold jewellery exports continue to fall in Jan

MUMBAI, Feb 17 (Reuters): Indian exports of gold jewellery dropped in January for a tenth consecutive month, and are likely to fall further due to no sign of any government incentives to revive the sagging shipments.
India, which is fighting to reduce its current account deficit, has brought in measures to restrict imports of gold, its second-biggest import item by value after oil.
The measures include a rule that 20 per cent of all gold shipped in must be re-exported as jewellery, making it difficult for domestic jewellers and even exporters to get supplies despite high premiums.
"In most of the ports, due to procedural delays gold is not available," said Pankaj Kumar Parekh, vice-chairman of the Gems and Jewellery Export Promotion Council (GJEPC).
Gold jewellery exports from April to January fell 49.5 per cent to $5.5 billion, GJEPC said in a statement.
January shipments fell 32.8 per cent from a year earlier to $482.2 million, it said.
Besides the 80/20 import rule, the federal government also levies a record 10 per cent import duty on the yellow metal.
Gold imports fell to just 21 tonnes in November against a record 162 tonnes in May 2013. "We are asking for primary requirements like a cut in import duty and removal of the 80/20 rule," said Parekh.
Analysts say the easing of the Reserve Bank of India's so-called 80/20 export rule will have more of an impact on boosting supply than a cut in the import duty.