Indian Gold Import Freeze Sends Premiums Soaring

GFN – MUMBAI: India’s gold and silver imports have effectively stalled for more than five weeks as administrative delays and tax uncertainty jam bullion shipments at customs, tightening supply in one of the world’s largest precious metals markets and driving local premiums sharply higher.

 

According to a Bloomberg report, consignments have remained stranded since April 1 after delays tied to customs clearance procedures, updated import authorization lists, and unresolved questions surrounding integrated goods and services tax treatment for bullion imports.

“The duration of the import halt is unusual. The situation is getting tighter.”

The comments, made by FinMet Pte Ltd. Managing Director Sunil Kashyap, reflect growing concern among traders and jewelers as inventories tighten following India’s Akshaya Tritiya festival, one of the country’s largest seasonal buying periods for gold and silver.

Domestic bullion premiums surged above $20 per ounce this week for the first time since February, according to data referenced by the World Gold Council, highlighting mounting stress in the local market as traditional bank-led import channels remain effectively frozen.

Under current conditions, the primary route for importing bullion has shifted toward the India International Bullion Exchange (IIBX) located within Gujarat International Finance Tec-City. Traders say flows through the exchange have accelerated sharply, though the mechanism requires longer settlement periods and ties up additional working capital.