Gold price in Nepal much higher than in India ; risks of smuggling getting higher

KATHMANDU, JULY 3: The price of gold in Nepal has surged significantly higher than in India. Today, gold is being traded at Rs 142,700 per tola in the Nepali market compared to Rs 114,707 per tola in the Indian market, resulting in a substantial price difference of Rs 28,000 per tola.

Over the past week, the price of gold in India remained steady at Rs 114,000 per tola, whereas in Nepal, it fluctuated between Rs 114,000 and Rs 142,000. The rise in gold prices in Nepal is primarily due to the recent increase in customs duty on gold imports, which has been raised by 5 percent to 20 percent as per the new fiscal budget. Manikratna Shakya, former president of the Federation of Nepal Gold and Silver Dealers' Association, explained that this customs duty hike forces bullion traders to pay an additional Rs 28,000 per tola when importing gold, leading to higher gold prices and increases risks of gold smuggling from India into Nepal.

Experts warn that the significant price disparity between Nepal and India may exacerbate smuggling issues. For a long time, various goods like food products and garments have been illegally brought into Nepal from India through the porous border. Now, there are growing concerns about the possible smuggling of gold.

Investigations by the Central Investigation Bureau (CIB) reveal that over 22,000 bullion traders in Nepal are involved in selling smuggled gold. Recently, the operators of Lucky Jewellers and Ashtmangal Jewellers were arrested for dealing in illicit gold.