The government has made hallmarking gold jewellery for quality control mandatory, a senior government minister said.

India is the world's biggest consumer of gold but quality is sometimes a problem, especially when small jewellers and customers face problems during redemption.

At present, about 77 items - including cement, mineral water and milk products - are certified through mandatory hallmarking under the BIS Act for conformance with quality norms.

The voluntary jewellery hallmarking scheme was started in 2001, with the Bureau of Indian Standards (BIS) named the sole agency in the country for hallmarking of gold jewellery under the provisions of the BIS Act, 1986.

Gold imports by India plunged 56 per cent to 125 tonnes in the fourth quarter, cutting full-year imports by 8.4 per cent as record high prices and high interest rates hit demand.

India, whose appetite for gold dates back centuries, imported about 878 tonnes of gold in 2011, down from 958 tonnes in 2010, Bombay Bullion Association President Prithviraj Kothari said in an interview.

The World Gold Council said in November that for the fourth quarter it expected the world's second most populous country to buy more than the 281 tonnes it bought in the same period a year ago, taking total imports over 1,000 tonnes.

The October-December quarter covers the peak festival and wedding season, when Indians traditionally splurge on gold jewellery and investments. It is rare for gold demand in the last quarter to remain below third quarter consumption.

"Imports were very bad in October to December, compared with last year, compared with Q3 of this year," Kothari said.

"People were even selling gold in November. For them it was an investment," he added.