"It's a small increase — Rs 25 increase per gram. Customers have paid much higher prices over the year because of the global increase in the price of gold" said Bhaskar Bhatt, managing director, Titan Industries told CNBC TV18 when asked what impact the hike in gold import duty would have on consumer demand.
Bhatt said the bigger concern was, in fact, the large increases in prices over the past 12 months. Volatility in prices is what is keeping consumers from buying, he added.
Overall, the hike in import duty is not expected to affect consumer demand too much. And one could look forward to the forthcoming wedding season.
Other industry experts echoed that view. Rajesh Mehta, executive chairman of Rajesh Exports, noted that it would have been better if retail consumers of gold could have been spared higher prices at a time when prices are already high. However, he added that since the overall increase in gold prices would only be about 1 percent, there would be no major effect on demand, adding that gold prices moved in a range of 1-5 percent every day.
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