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MMTC’s August gold import dropped to 5 tonnes

19 Aug 2011 Evaluate

Minerals and Metals Trading Corporation (MMTC), a state-owned trading firm, gold import for August has been dropped by an eighth to 5 tonnes. This can be attributed to the fact that gold buyers in India, the world's biggest consumer, are in wait-and-watch mode as the prices remain near record high. MMTC is the country's second biggest importer of the yellow metal.

The first four months of the year had been good, but sales slowed in the past three-four weeks. The sudden rise of $150 an ounce has put everyone on the back foot. Weak buying and record prices have prompted MMTC to lower its import estimate for the year to March 2012 to 250 tonnes from 265 tonnes. MMTC has also cut its silver import estimates to 1,200 tonnes from 1,500 tonnes.

In this year gold prices have gained about 25 percent so far to hit a record high of 26,575 rupees per 10 grams. Since 2003, the prices have more than trebled and have been on a gaining streak for eight years in a row.

MMTC is one of the leading companies in India which deals in agricultural commodities, fertilizers and minerals. Besides, it is also an importer of gold and silver. Presently, the trading company has an overseas office in Singapore. PEC, MMTC and other state-run trading agencies like STC import different varieties of pulses on behalf of the government to augment domestic supply.

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66.71 -0.99 (-1.46%)
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