Standstill in Indian gold, silver imports drags on, threatens supply
Indian banks have been unable to import gold and silver for five weeks due to administrative bottlenecks and tax clarity issues, pushing up domestic prices and threatening shortages. The import halt has led to a premium of domestic over international gold prices exceeding $20 an ounce, the highest since early February.
Indian banks have been unable to import gold and silver for five weeks, an unusually long halt that's pushing up domestic prices and threatening shortages. Shipments have been stuck at customs since April 1 due to administrative bottlenecks and a lack of clarity over taxes. The trade ministry delayed publishing its annual list of banks eligible to import precious metals, and the customs authority hasn't issued a clearance order. Banks are seeking clarity on whether gold and silver will be exempt from the integrated goods and services tax. The import delays have halted a large chunk of supplies, pushing up local prices. The disruption is likely to have a positive impact on India's trade balance.
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