Gold import and distribution to be hit in Nepal

The Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA) has stated that the import of gold could be affected due to the prohibitory order imposed in Kathmandu valley and other major cities of the country. It has further mentioned that the prohibitory order has impacted the trade of the yellow metal in cities where the order has been issued and since banks have also stated that it will be difficult to import gold given the current situation the import of gold could be affected.

FeNeGoSiDA has already issued a notice mentioning that its office will remain closed during the prohibitory order. “However, since some districts still remain open and trade in the commodity has been taking place, the federation has been determining and publishing the price of gold,” informed Dharma Sundar Bajracharya, Secretary General of the federation.

Bajracharya mentioned that since businesses have been closed down in many places and also because people cannot visit the jewellery shops there is no need to import the daily quota of 20 kg of gold. He also said that if the amount that cannot be imported at present is done so after the situation gets normal then the genuine gold traders will be able to get the commodity.

“However, if the same amount of gold is distributed now like in the normal times then only a few people may be able to avail the commodity and genuine businesses and customers may be deprived of the yellow metal,” Bajracharya added.

Meanwhile, Manoj Kumar Sah, Spokesperson of FeNeGoSiDA, shared that the federation has requested Nepal Bankers’ Association (NBA) to manage the sale and distribution of gold at the local level in places where businesses are still open. He said that the federation and NBA are holding consultations on the issue. Sah has also urged the traders where there is no prohibitory order to continue with their businesses but by adopting all the necessary health safety measures.

The federation has stated that there are suspicions that the amount of gold that was imported during the previous lockdown was not availed by genuine businesses and consumers. It has mentioned that in the previous lockdown around 500 kg of gold had piled up in the banks but it had sold out within a few days of the lockdown being lifted. However, the federation does not have any details regarding the buyers. FeNeGoSiDA has thus raised its concerns this time so that the gold that is piling up in the banks can be availed by genuine businesses and customers later on.

Usually, banks can sell the gold after 15 days of its import if it does not receive any buyer who has been recommended by the federation. When the commodity is sold in this manner then it could be availed by only a handful of buyers, hence FeNeGoSiDA has appealed to all concerned to be aware of the issue.