Pune: Peru, the world’s sixth top gold producer, today said the shipment of the precious metal to India is likely to surpass USD 270 million this year.
To boost trade in gold and other commodities, the Latin American country is considering signing a Free Trade Agreement (FTA) with India.
“Currently, only 0.6 per cent of India’s total gold imports comes from Peru. Last year, we exported USD 270 million of gold and this year it will be slightly more,” Peru Ambassador to India Javier Paulinich told reporters at 11th International Gold Convention here.
The mineral-rich country started exporting gold to India since 2012. “We entered late in direct selling of gold to India,” he said.
However gold exports have increased to India due to direct selling. “We exported USD 106 million in 2012 and it rose by 150 per cent to USD 270 million in 2013,” he added.
To meet rising gold demand, Paulinich said, “Three Indian investors have invested in gold mines in Peru. The numbers are expected to rise in following years.”
Peru, which produced five million ounce of gold last year, is also talking seriously with the Indian government on FTA to explore potential in both nations, he said.
India, the world’s largest gold importer, buys largely refined gold from overseas market. Only 10 per cent is
imported in raw form.
Domestic gold refiner MMTC PAMP Managing Director Rajesh Khosla said that there is scope to increase import of gold raw material from Peru.
“Gold is a complex business. Global miners wish to enter into long term contract with internationally accredited and financially sound refiners. However talks are on,” he added.
Peru produced five million ounce of gold in 2013.