Press Esc to close
Thursday 08 December 2016
News updated at 2:45 AM IST
Weather
Max: 28°C
Min : 19°C
In Bengaluru
Partially cloudy

Gold tariff value hiked, FMC ups margins; PM says cut appetite

New Delhi, Aug 30, 2013 (PTI):
Government today raised tariff value on gold imports while FMC hiked margins on the commodity in futures trading, twin steps to control inbound shipments of the precious metal and check volatility in its trading.

Meanwhile, Prime Minister Manmohan Singh said India needs to reduce its appetite for gold.
"Clearly we need to reduce our appetite for gold, economise the use of petroleum products and take steps to increase our exports," Singh said while making a statement in Parliament on the state of economy.

"In 2010-11 and the years prior to it, our current account deficit was more modest and financing it was not difficult, even in the crisis year of 2008-09. Since then, there has been a deterioration, mainly on account of huge imports of gold, higher costs of crude oil imports and recently, of coal," he said.

The CBEC raised the tariff value of gold to USD 461 per ten grams from USD 432. Tariff value is base price on which the customs duty is determined to prevent under-invoicing.
Commodity markets regulator FMC hiked initial margins in gold futures to 5 per besides an additional margin of 5 per cent on all the gold, effective September 2.

A margin is the amount of cash an investor must put up to open an account to start trading.
FMC said: "In the light of the recent volatility observed in the prices of Gold, the Commission has decided to raise the initial margin in respect of Gold contracts. The Exchanges are directed to impose initial margin on Gold contracts at the rate of 5 per cent of the value of the contract...."

The twin moves come in wake of prices zooming to all-time high of Rs 34,500 per 10 gms with a biggest ever one day surge of Rs 2,500 on August 28 as the rupee hit a historic low of 68.75 a dollar. Prices have risen 9 per cent so far in August.

The impact of twin steps was visible in the market as gold futures prices today slipped below the Rs 33,000-mark to Rs 32,774 per 10 gram at MCX. In spot markets it closed at Rs 31,700 per 10 grams in the national capital today.

 

Go to Top

Photo Gallery
Flowers in full bloom at Parliament house during the winter session, in New Delhi on Wednesday...

Flowers in full bloom at Parliament house during the winter session, in New Delhi on Wednesday...

Devotees carry idols during the International Gita Mahotsav-2016 in Kurukshetra on Wednesday...

Devotees carry idols during the International Gita Mahotsav-2016 in Kurukshetra on Wednesday...

Shah Rukh Khan taking selfie along with Rahul Dholakia, Nawazuddin Siddiqui and Ritesh Sidhwani...

Shah Rukh Khan taking selfie along with Rahul Dholakia, Nawazuddin Siddiqui and Ritesh Sidhwani...

Mumbai Indians captain Rohit Sharma taking selfie with team owner Neeta Ambani...

Mumbai Indians captain Rohit Sharma taking selfie with team owner Neeta Ambani...

Tollywood actress Rituparna Sengupta crowning the winner of Sarad Sundari-2016...

Tollywood actress Rituparna Sengupta crowning the winner of Sarad Sundari-2016...

An RAF jawan guards at a water cannon vehicle in Talwandi Sabo near Bathinda on Wednesday....

An RAF jawan guards at a water cannon vehicle in Talwandi Sabo near Bathinda on Wednesday....

Supporters of former Tamil Nadu Chief Minister J Jayalalithaa get their heads shaves....

Supporters of former Tamil Nadu Chief Minister J Jayalalithaa get their heads shaves....

A policewoman places flowers at the burial place of former Tamil Nadu CM Jayalalithaa...

A policewoman places flowers at the burial place of former Tamil Nadu CM Jayalalithaa...

Birds atop a roof as suns ets during a foggy day in Srinagar on Wednesday...

Birds atop a roof as suns ets during a foggy day in Srinagar on Wednesday...

A fisherman casts his net to catch fish during a foggy day at Dal Lake in Srinagar on Wednesday...

A fisherman casts his net to catch fish during a foggy day at Dal Lake in Srinagar on Wednesday...

Like us on Facebook

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523