Indian banks have halted
gold and silver import orders from overseas suppliers, with tonne
of the metals stuck at customs as a formal government order has
not been issued authorising bullion imports, trade sources said.
Without fresh imports, India could face supply shortages, as
the world’s second-largest gold consumer and biggest silver
buyer relies on overseas purchases to meet nearly all its
demand.
Weak Indian demand could weigh on global gold and
silver prices, while narrowing the country’s trade
deficit and supporting the rupee, which has been among
the worst-performing Asian currencies so far this year.
Authorities have carried out various measures designed to
reduce pressure on the currency, including most recently urging
refineries to curb their spot dollar purchases.
The halting by Indian banks of gold and silver import orders
from overseas suppliers and the tons of the metals stuck at
customs due to the absence of a formal government order
authorising bullion imports have not been previously reported.
The Directorate General of Foreign Trade (DGFT), under the
Ministry of Commerce and Industry, typically issues an order at
the start of each financial year listing banks authorised by the
Reserve Bank of India to import gold and silver.
The previous order, issued in April 2025, was valid until
the end of the last financial year on March 31 and banks are now
awaiting a fresh DGFT directive.
The DGFT did not immediately respond to a Reuters request
for comment.
Banks expected the DGFT to issue the order in early April,
as it does every year, but with no update so far, more than 5
tons of gold are stuck without customs clearance, said a
Mumbai-based bullion dealer at a private bank.
Uncertainty over the timing of the DGFT order has led banks
to halt new import orders from overseas suppliers, said the
dealer, who did not want to be named as he was not authorised to
speak to the media.
Around 8 tonne of imported silver is also stuck without
customs clearance, the sources said.
There is no point in placing new orders when earlier
consignments cannot be cleared, another bullion dealer said.
India’s gold demand in 2025 fell to 710.9 metric tonne, the
lowest level in five years, according to the World Gold Council.
Gold and silver inventories from previous months’ imports
are experiencing drawdowns, with the market now relying on sales
from exchange-traded funds, which are seeing redemptions, the
sources said.
“There is a need to bring clarity and ensure imports
resume,” said Surendra Mehta, secretary at the India Bullion and
Jewellers Association.
Without imports, supply shortages will emerge and premiums
will rise after Akshaya Tritiya, Mehta said, referring to the
second-largest gold-buying festival in India.
As the Iran conflict has pushed up prices of oil, gas and
fertiliser, India’s import bill is likely to rise in April,
which may have prompted the government to slow gold and silver
imports to contain the trade deficit, said a bullion dealer in
Kolkata.
Published on April 17, 2026
