Retail buying was robust during Akshaya Tritiya and jewellers had replenished their stocks after the festival, leading to increased imports.

Chennai: The return of retail demand during Akshaya Tritiya saw gold imports in May jumping 49 per cent to 116 tonnes. India had imported 78 tonnes of gold in May 2018.

The country’s gold imports in value terms rose to $4.78 billion last month from $3.48 billion in the same month last year, Reuters reported.

The main trigger for the increased imports was the occasion of Akshaya Tritiya on May 7. The onset of the wedding season and stable prices combined with pent-up demand pushed up Akshaya Tritiya sales by 15 to 20 per cent this year.

Retail buying was robust during Akshaya Tritiya and jewellers had replenished their stocks after the festival, leading to increased imports. Domestic gold prices also were at a five-year low and this made stockists active during the month. Further, the wedding season purchases also have been robust due to subdued prices.

Industry insiders say gold smuggling was significantly down in May due to the elections. This led to increased procurement through the official channels.