India's gold demand during April-June declined 25 per cent to 154.5 tonnes due to unseasonal rains in the first quarter that damaged crops and the shrinking of wedding dates, according to the World Gold Council (WGC).
"Consumer demand in India fell 25 per cent to 154 tonnes in the April to June quarter, due to a buoyant stock market, a softening rural economy affected by unseasonal heavy rains in Q1, which damaged crops and fewer auspicious days impacting wedding-related demand.
"If, however, we look at the first half of the year, then the fall was only 7 per cent to 346.2 tonnes compared with 372 tonne in the first six months of 2014," WGC Managing Director, India, Somasundaram PR told PTI here. Especially, small jewellers in tier II and III towns were affected due to this decline in consumer demand, he added.
The demand, however, was robust during festivals like the Akshaya Tritiya, but people showed cautious approach towards gold expecting a weak monsoon, he noted. Total jewellery demand was down 23 per cent at 118 tonnes compared with 152.6 tonne in the same quarter last year. The value of jewellery demand fell 24 per cent to Rs 28,703 crore from Rs 37,807 crore in the corresponding period of 2014. (More)