Banks face prolonged gold, silver import delays; domestic bullion prices rise: Report
Banks in India have faced nearly five weeks of delays in importing gold and silver due to customs-related issues and tax uncertainty, causing domestic bullion prices to rise. Despite a 12% drop in global gold prices since late February, domestic premiums have increased due to constrained supply.
India's banks have been unable to import gold and silver for nearly five weeks due to customs-related bottlenecks and uncertainty over tax treatment. The disruption, which began on April 1, has stalled shipments at ports and airports across the country. The delay in publishing the annual list of authorized banks and the lack of clarity on the integrated goods and services tax (IGST) exemption have contributed to the slowdown. Domestic bullion premiums have risen due to constrained supply, with the premium of domestic gold prices over international benchmarks crossing $20 per ounce. The India International Bullion Exchange has emerged as the only active route for bullion imports since April, with surged volumes. Economists believe the temporary slowdown may marginally support India's external balances.
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