KATHMANDU, Oct 22: As wedding season and various festivals are approaching, there is a shortage of gold in the Nepali market.
With the arrival of festivals such as Teej, Dashain, Tihar and wedding season, the consumption of gold in the Nepali market has increased. However, according to traders, they are not able to provide gold and silver jewelry as per the demand of the customers.
Gold price remains stagnant, silver price sees marginal decline
The traders complain that the government has reduced the daily import quota of 25 kg to 10 kg of gold since last April, which led to shortage of gold in the market.
Manik Ratna Shakya, President of Federation of Nepal Gold and Silver Dealers' Association (FENEGOSIDA), said that the traders are suffering due to the lack of gold and silver in the market at the time when the gold and silver business is active. Shakya said that due to lack of raw materials for making gold and silver jewelry in the market, it is not possible to fulfill the demand of the customers.
He complained that since the last six months, the traders have been hit hard as the government has cut down on the import of gold stating that there is lack of foreign exchange reserves. President Shakya said that up to 50 kg of gold jewelry are sold on Tihar, especially Dhanteras. He said that after Dashain, gold is being traded at around 30 to 35 kg daily.
Similarly, he said that on the day of Dhanteras, 40 to 50 kg of gold will be traded. Shakya complained that there was a problem in the supply of gold, however, the government is not interested in increasing its supply. He warned that if the government does not immediately increase the quota reduction on gold and silver imports, the distortion in the market will increase.
