Press Esc to close
Monday 27 February 2017
News updated at 12:54 AM IST
Weather
Max: 35.5°C
Min : 19.7°C
In Bengaluru
clear sky

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
Bollywood actress Sonal Chauhan walks the ramp during the Jaipur Couture Fashion Show...

Bollywood actress Sonal Chauhan walks the ramp during the Jaipur Couture Fashion Show...

Cricket icon Sachin Tendulkar gestures while flaging off IDBI Federal Life Insurance's New...

Cricket icon Sachin Tendulkar gestures while flaging off IDBI Federal Life Insurance's New...

A pair of parrots collecting nectar from Palash flower at a garden in New Delhi ...

A pair of parrots collecting nectar from Palash flower at a garden in New Delhi ...

Police inspect after a gas tanker collided with a tree at National Highway near Bihuguri of Tezpur..

Police inspect after a gas tanker collided with a tree at National Highway near Bihuguri of Tezpur..

Bikers perform stunts at an event in Faridabad...

Bikers perform stunts at an event in Faridabad...

Tracks laid out for the NEXA P1 Powerboat, Indian Grand Prix of the Seas, the global series...

Tracks laid out for the NEXA P1 Powerboat, Indian Grand Prix of the Seas, the global series...

A damaged car after an accident on Delhi- Gurugram Expressway at Shankar Chowk in Gurugram...

A damaged car after an accident on Delhi- Gurugram Expressway at Shankar Chowk in Gurugram...

A competitor at the All India Stunters and Bikers meet at Chikmagalur in Karnataka...

A competitor at the All India Stunters and Bikers meet at Chikmagalur in Karnataka...

A honey bee collecting nectar from a flower in New Delhi ...

A honey bee collecting nectar from a flower in New Delhi ...

Participants performing the yoga steps during the Mega Self Defence Camp for Women organised...

Participants performing the yoga steps during the Mega Self Defence Camp for Women organised...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523