According to the Nepal Gold and Silver Merchant Federation, 15 to 20 kg of gold is consumed per day in the off-season. During the season, consumption increases to 35 to 40 kg per day. At the rate of 20 kg per day, 2400 kg of gold is consumed in the first 4 months of the current financial year.

According to the quota system, commercial banks can import and sell 20 kg of gold per day. But looking at the import data of the customs department, a total of 132 kg 564 grams of gold was imported in 4 months. In other words, only 1.10 kg of gold per day is imported legally. But the market is still running. 

According to the businessman, about 100 kg of gold was consumed in just two days of Dhanteras. But the import volume is low. After all, where is the gold market? How are businessmen meeting the demands of the general public? Experts say, "With the gold of illegal smuggling!" 

Some time ago, when there was a 50 percent difference in customs rates between Nepal and India, smuggling was rampant. According to experts, smuggled gold entered Nepal after the price of 18,000 to 20,000 rupees per tola in Nepal compared to India.

'For one thing, gold became expensive when it arrived in Nepal through customs. It cannot be said that they did not come illegally from India due to open borders. Apart from illegal, some old gold also came in the market. Those who returned from abroad also brought it," said Arjun Rasaili, president of the federation, "but because the customs did not decrease, illegal gold entered the market. That gold filled the market.

In the budget of fiscal year 2081/82, the customs rate in Nepal was increased from 5 percent to 20 percent. But the Indian government reduced the customs rate from 15 percent to 6 percent last July. Even though 3 and a half percent GST was imposed in India, the customs rate between Nepal and India was 50 percent different. This is the reason why gold became more expensive in Nepal compared to India. And, due to the open border, the businessmen say that the illegal business has been encouraged. 

It is also said that the daily consumption in the market is up to 500 kg. Although that is unlikely, the average consumption is 20 to 25 kilos per day. Reaches up to 50 kg in season. Now, although the consumption is less due to the price, it is still more than 12 kg,'' former president of the federation, Manikaratna Shakya, said, "The market is filled with the old returned gold, stocks and smuggled gold. Illegal gold has come from India.

Once upon a time, gold was smuggled from the north to the south and sold. Sakya says that he has now come from south to north. He claims that due to illegal gold being brought in, some jewelers have reduced the wage-tax fee on jewelry by 5 to 7 percent.

It was not possible to sell the gold that came at a high price from the international market by reducing the wages. A 50 percent discount on wages cannot be given for legitimate gold," said former president Shakya. "Where the gold came from and how it was sold, that is a matter of investigation. After the government increased the customs rate by 50 percent, why some businessmen increased their wages has also become a matter of doubt. It is necessary for the government agency to investigate it.

According to the customs department, around 100 kg (3.33 kg per day) of gold was imported in July. Only 50 grams were imported in August. There was no import in October. According to customs data, 32 kg of gold was imported in Kattik. The demand for gold increased greatly as the Dhanteras of Tihar fell in October. 

Looking at the mentioned data, it does not seem that the amount of import, demand and supply match. This also confirms that market demand is met by illegal gold. Jeweler and market analyst Tejaratna Shakya also claimed that smuggling due to open borders has increased. He also admitted that the main reason for the increase in smuggling is the customs rate. 

"When customs rates were different between India and Nepal, a lot of gold came from illegal routes, and the market was driven by that gold," said Tejaratna, "After it came from illegal routes, you can run a shop even if you don't have to pay for jewelry." The market followed the same trend. After the government reduced the customs rate by 50 percent, the businessmen increased the wage and labor charges. This has also raised doubts in the gold business. 

Rajan Paudel, Director General of Commercial Supply and Consumer Protection Department, also admits that the market is flooded with smuggled gold. "20 kilos a day are imported through legal channels, they can be bought. But it has been reported that up to 500 kg has been consumed in the market. Where is 480 kg of gold? There is a serious question about this," he said. "There is a suspicion that the market is filled with smuggled gold. But unfortunately, its data is nowhere to be found.'