The delay to lift the ban has further worsened the supplies of yellow metal in the domestic market.[break]
“We have requested MoCS for the second time to lift the ban immediately, considering the shortage of gold and its impact on prices in the market,” a source at MoF told Republica on Sunday.
Minister for Commerce and Supplies Rajendra Mahato said Saturday that the decision to lift ban on import has been delayed as the ministry is studying the impacts that the decision might make national economy.
MoCS can impose or lift the ban on gold, exercising the Article 3 of the Export Import (Control) Act1999.
The budget for fiscal year 2010/11 issued through ordinance had jacked up the import duty to Rs 1,000 per 10 grams of gold.
Price of yellow metal had touched an all time high of Rs 34,035 per 10 grams on Thursday due to shortage of gold. The rise in prices in domestic market was not proportionate to price rise in international market.
Finance Ministry officials hope that the fresh hike in import tariff will discourage undue import of gold.
The government imposed ban on gold import on September 3 on the back of skyrocketing import that put huge pressure on balance of payment. The nation had imported gold worth Rs 41 billion in 2009/10.
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