Mumbai: Despite the government removing restrictions on gold imports late past month, imports of the precious metal have not picked up because of a supply glut, reports Business Standard.

Industry sources say hardly 15 tonne of gold has been imported in December so far on consignment basis. For two weeks after government lifted the 80:20 scheme, there were absolutely no imports, they added. Meanwhile, gold prices are being quoted at a discount because of oversupply and lack of demand.

The supply is high because of heavy imports earlier. Traders have also started importing gold jewellery from Indonesia under the free trade agreement by paying just 1 per cent duty. Reports suggest that even 24 carat jewellery is being imported under this route. Such imports are coming in at New Delhi and Hyderabad. The demand is also weak as the first phase of marriage season has ended.