Short supply of gold in south India

The gold markets in southern India seem to be facing a shortage of gold supplies, according to Gem & Jewellery Export Promotion Council (GJEPC) chairman Sanjay Kothari. In a local media, he said that the short supplies are leading to lowered jewellery exports from prominent manufacturing hubs like Hyderabad and Kerala.

A corrective measure suggested by him was for nominated agencies like the Minerals and Metals Trading Corp. (MMTC) and the Bank of Nova Scotia to increase their supply base of exporters in South India. Currently, MMTC caters to a select group of exporters in Chennai, and lacks presence in Coimbatore, Bangalore, Hyderabad and Kochi. The Bank of Nova Scotia operates two schemes, however requires one year to open an account. Kothari opined that the agencies should cater to small exporters, who presently have no option to source the raw material.