March 30: The import of gold ornaments has increased by 20 percent in the eight months of the current fiscal year compared to last year. A total of 17.5 kg gold ornaments worth Rs 60.73 million have been imported in the review period. In the corresponding period of last fiscal year, 13 kg gold ornaments worth Rs 50.60 million were imported into the country.

The import of gold has increased by 20  in this fiscal year in terms of the volume of import. Nepal imports gold ornaments from 17 countries – Bahrain, South Korea, Hong Kong, Malaysia, Pakistan, Portugal, Qatar, Oman, Norway, Saudi Arabia, Singapore, Thailand, Turkey, the UAE, the UK and Iceland.

Along with the import of raw gold, import of gold ornaments is growing exponentially in the country. Nepal has skilled manpower and required infrastructure to make gold ornaments in accordance to the designs popular in the international market but the import is still rising.

“Customers have shown preference to buy ornaments that are showcased in the movies resulting in the import of gold ornaments,” said Tej Ratna Shakya, former president of the Federation of Nepal Gold and Silver Dealers' Association. He said the demand for Nepalese-designed ornaments is declining while the foreign designs are getting popular. So, the import of gold ornaments is increasing, according to Shakya. Likewise, migrant workers returning from labour destination countries are also bringing in gold ornaments with them.

Traders say despite having human resources and machines to prepare gold ornaments, import is rising. They were of the view that government should take necessary measures to prevent this. “Import of gold ornaments benefits particular group of traders but is detrimental to the economy of the country, so it should be prevented,” says Manik Ratna Shakya, President of  FENEGOSIDA, adding, “The government should introduce policies to stop this increasing trend of import.”

Shakya argues that the government should increase the daily quota of importing raw gold to discourage the import of gold ornaments. “The market is currently facing shortage of raw gold which should be increased from the current daily quota of 10 kg,” he said.

Stakeholders believe that it is beneficial to import raw gold instead of gold ornaments. The government has also hiked the customs duty on gold ornaments from 10 percent to 15 percent. The customs duty was increased in response to the traders’ demand. Increase in customs duty was expected to cut down the import of gold ornaments but the import has not declined, said former president of FENEGOSIDA Shakya.