India, the leading player in import and trade in bullion and export of jewellery is set to become a 'price-setter' from the position of a 'price-taker' in bullion trade, a top industry official said.
India imports around 25 per cent of the world's gold production, still it does not exert any significant impact in discovery of gold prices in the international market due to its fragmented and unorganised bullion trade. The country depends on the international market for the benchmark price which is based on London AM/PM price fixing.
"Following the setting up of the Indian Bullion Market Association (IBMA) by leading bullion and jewellery merchants associations in alliance with the National Spot Exchange (NSEL), India will be able to create a benchmark Indian spot price for bullion," NSEL Managing Director and CEO, Anjani Sinha, told reporters in Mumbai.
The objective of promoting IBMA is to create linkages between domestic stock of gold and silver, recycled gold and silver and to remove disparity between domestic prices and international prices.
"By bringing together bullion dealers and jewellers, IBMA will address global bullion issues and reduce disparity between domestic prices and international prices. It also aims to create linkages between domestic stock of gold and silver," Bombay Bullion Association President, Suresh Hundia, said.