Budget expects reduction in gold import duty

- Commodity Current: Jayavadan Gandhi

In the new budget of the Government of India, the meat of the commodity sector has been slashed by 203-2. The Indian economy is picking up speed in the new year after a break caused by the Corona epidemic. Then there are the expectations of what kind of fuel the central budget provides. While countries around the world are gearing up to support the economy, the commodity sector needs a booster dose to keep it alive like the stock market. Demands for incentive measures ranging from reduction in gold import duty have been raised to offset the sluggishness of the jewelery market. At a time when the rise in crude oil is also hurting the local markets, the agri sector is also likely to be given special attention and action on the government's target of doubling farmers' incomes, starting with the coordination of futures and spot markets.

With 4.5 per cent customs duty on gold as well as GST, the total tax burden on imports has gone up to 10 per cent, which has led to an increase in smuggling of gold. If the duty on gold imports is reduced to four per cent and the burden of other taxes is reduced, there will be transparency and growth in trade. Many countries like China, USA, Malaysia, Singapore have taken steps to reduce or abolish import duty. In this regard, there has been a demand from jewelers' circles that the government should take concrete steps to boost the bullion market in the country.

Meanwhile, in the midst of winter cold, in the agricultural market yards, there has been Shri Ganesh of income including sun crop coriander, cumin, ajmo, fennel, ajmo castor, red chilli. This year is going to be golden for spice crops like cumin, coriander, turmeric. Prices in the current season are in the range of Rs 1,200 to Rs 2,000 per quintal as farmers are getting Rs 200 to Rs 200 per quintal higher this season due to increasing demand from countries like Dubai, Malaysia and Europe against the gap in production of 5 to 20 lakh sacks of coriander this year. However, as investors have had bitter experiences in the past in coriander, the current caution is in a state of watch and weight. However, the rise in coriander is likely to be offset by good prices this year as it continues to move steadily.

Yards like Unjha-Gondal are already warming up following the possibility of a big boom in cumin this year in spice crops. Due to low planting in cumin and reports of spoilage in new crop, the focus on unilateral boom in cumin this year has been strong. Going up in the range of 15 to 200. If this situation continues, cumin futures may pick up with a headline of 5 to 20 headlines. The pipeline in Jira is almost empty and the demand for foreign and local demand has continued to rise. The cumin boom has crept into the minds of traders. The peasantry is also in a position to get higher and better prices. Demand for Indian cumin is also growing as the crop is weak in overseas producing cumin. The cumin boom is also expected to increase in local demand during the upcoming wedding season as well as during the Ramadan and Holi festivals.

Turmeric, another spice cheese, is also booming. For many years, the turmeric carry forward also had good stock and production, so there was no prospect of a turmeric boom, but reports of significant damage to the turmeric crop due to the monsoon in South India have led to a boom in turmeric. The market, which is currently at the level of tens of thousands, is likely to gradually move up to 1500. However, the state of weight and watch is still being observed in turmeric. In the present market of turmeric, one third of the traders are expecting new crop incomes. As turmeric stockists have been suffering financial losses for the last three to four years, this year they are in a position to drink milk by blowing buttermilk.

Oilseeds are also on the rise in castor and rye this year. Castor production is estimated to be lower than expected. The market is currently in the range of 500 to 800 as demand for castor is slowly increasing amid reports of crop losses. China is the largest buyer of Indian castor oil.