MMTC to expand gold infrastructure

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gold-bars-india-Public sector metal trading company MMTC Limited is planning to open 11 new gold delivery depots across the country, especially in tier II and III cities, following Commerce Minister Anand Sharma’s concerns on reduced gold supply, which has affected jewellery exports.

“Currently, we are delivering gold to consumers in three locations – Mumbai, Delhi and Jaipur. Now, we are working on plans to deliver gold to jewellery exporters in major cities across the country,” said director AnandTrivedi.

Jewellery exporters are currently facing an acute shortage of gold due to import restrictions imposed by the Reserve Bank of India (RBI). On June 5, the RBI ordered nominated agencies and star trading houses to import gold to supply actual jewellery exporters. Earlier, banks had been asked to import gold only for supplying to exporters and hence, supply of the yellow metal to domestic jewellers was automatically kept in abeyance.

Since many nominated agencies and star trading houses could not commence gold import to service jewellery exporters, Sharma warned them their licenses would be cancelled if gold for exporters was not imported. RBI has not put any restrictions on import of gold for exporters.

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