"Compared to 2009-10, the gold import at Ahmedabad has increased by more than 15% in [the last 11 months of] 2010-11," says Samir Mankad, CEO of GSEC Ltd at the city's airport, speaking to the DNA newswire....Another seller concurred, and added that demand is hottest in the rural areas of the country.
"Two years back, due to global recession and slowdown in India, many could not invest in gold," says Gold Bullion trader and analyst Girish Chokshi, also quoted by DNA.
"Now, they don't want to miss it again. The import has gone up because the demand is aggressive."
India's farmers are benefitting from agricultural-goods inflation, and they're quite prepared to turn hay into gold while they can. Since what they sell benefits from inflation, they aren't deterred by higher prices as much as someone that's chained to cost-of-living increases.