Temples Now The Only Hope For Gold Industry?


New Delhi: The glitter has gone out of the gold industry and it is hoping for divine intervention - but of a different kind - to breakout from the negative phase. Industry stakeholders feel if India's gold-rich temples part with at least half of their treasure, this will save the government from importing the yellow metal for at least four to five months.

“I feel that if the temples sell part of their gold, the country does not need to import gold for five to six months. The consumption of gold in India will remain static, no matter how much the government asks citizens not to buy gold. The market is going through a slump,” said Harshad Ajmera, a director of the All India Gems & Jewellery Trade Federation.

A similar sentiment was echoed by Pankaj Parekh, vice chairman, Gems & Jewellery Export Promotion Council, who said a partial release of temple gold can not only save the country from foreign exchange outflows but can even help in export earnings.

“If the temples release some of their gold, the country need not import this for another four-five months. It will be win-win situation for both the government and the temples. The government will save a lot of foreign exchange," he added.

All this is predicated on building consensus between the temples on parting with some of their gold.

There were reports that the RBI had sent a circular to some of India's prominent temples seeking details of their gold stocks. Three of the richest temples have, however, denied receiving such a circular.

"We have not received any request from the RBI as of now. The gold is with the treasury department and we cannot give any estimation. We get around 2 crore as hundis (offerings) everyday," a spokesperson of Tirumala Tirupati Devasthanam in Andhra Pradesh told.

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Source: IANS