The value of gold imported into India in the first nine months of FY 2017 has dropped by 32% as compared to imports during the same period a year earlier, according to report published by media agency PTI. The report said that the value of gold imported into the country during April-Dec 2016 stood at US$ 17.7 billion against the US$ 26.4 billion worth of gold imported during April-Dec 2015.

Market watchers say there could be two factors responsible for the drop – a weakening of global gold prices, as well as a dip in local demand in Dec, particularly from the rural markets which were affected by the post-demonetisation cash crunch, PTI reports.

Quoting data released by the Ministry of Commerce, PTI states that gold imports dipped by 48.49% to US$ 1.96 billion in December. Earlier, imports had declined consistently from February to September, but registered an increase in October and November.

The PTI report stated that official gold imports were just 60 tonnes between April-July 2016 as against nearly 250 tonnes reported a year earlier.