Gold Silver Reports ~ As the winter is unlikely to bring bright prospects for India’s rabi crops, it will dent the rural demand for gold also in this wedding season. Experts expect 10-15% dip in country’s gold purchaes this year as farmers are likely to reduce gold buying on account of poor kharif crops, the expected down in rabicrops and low commodity~prices.
India is one of the top buyers of Gold and the 60% of the total demand emanates from the rural region. This is the reason why a bleak monsoon or ‘not so cold winter’ might hamper the the expectations of the Gold market as the farmers would produce less output during these seasons which puts a dent on their financial prospects.
The winter is not so normal this season. Dry weather is ruling in most places with the temperature surging up roughly 5 degree Celsius above normallevels. If this condition persists the rabicrop would be under risk.
The rabi acreage is low this season compared to the area sown in 2014-15 season. As per Govt data, the total area sown under Rabi crops as on 8 January, 2015 stands at 564.98 lakh hectares.
Wheat has been sown/transplanted in 281.70 lakh hectares as against 299.33 lakh hectares sown during the corresponding period in the 2014-5 season. Coarsecereals in 57.40 lakh hectares compared to 52.28 lacs hectares during same period in 2014-15.
Farmers are scared of low income this season and are averse to make biggold purchases. They have not yet received promising signals from rabi season after a bad kharif and commodity~prices are unlikely to rebound soon. So, no more gold this season. ~ Neal Bhai Reports