India Silver Imports Slump as New Licensing Disrupts Shipments

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessIndia Silver Imports Slump as New Licensing Disrupts ShipmentsSilver imports into India have slowed sharply as a new licensing regime disrupted shipments, pushing local premiums to a multi-month high.Author of the article:Preeti Soni, Yihui Xie and Shruti Srivastava You can save this article by registering for free here. Or sign-in if you have an account.0bhc6d365zy4q05s7ee6b03q_media_dl_1.png Estimates from Metals Focus(Bloomberg) — Silver imports into India have slowed sharply as a new licensing regime disrupted shipments, pushing local premiums to a multi-month high.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountMost banks have yet to secure the permits needed to import the white metal and remain awaiting government approval, according to people familiar with the matter, who asked not to be identified because they are not authorized to speak to the media. Only a handful have obtained licenses, they said.India is one of the world’s largest consumers of silver, with demand driven by jewelry, silverware, industrial use and purchases during festivals and weddings. With negligible domestic production, it depends almost entirely on overseas supplies brought in by banks and other authorized entities, making its buying a key driver in global silver supply and demand balance.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe country imposed licensing requirements for silver imports in May to preserve foreign-exchange reserves, sending shipments plunging to an estimated 29 tons in June from 747 tons in January, according to consultancy Metals Focus. The June total was estimated to be less than 1% of the country’s annual silver demand.The resulting supply squeeze has pushed the estimated 30-day average premium — the extra amount buyers pay above benchmark prices — to the highest since at least 2019, when the firm started tracking the data, Harshal Barot, principal consultant at Metals Focus, said on Wednesday.“With imports choked off, physical silver has become scarce just as demand holds steady,” Renisha Chainani, head of research at Mumbai-based gold trading firm Augmont Enterprises Ltd., said. The domestic premium is nearing “squeeze-like territory,” she added. The committee responsible for approving import licenses meets only once or twice a month, contributing to the delays, according to a government official familiar with the matter, who asked not to be identified because they are not authorized to speak to the media. The new regime is intended to curb a surge in silver imports from countries including Thailand and the United Arab Emirates, which have free-trade agreements with India, the official said.The new licensing system has left some traders confused. There is little clarity over how quotas are allocated and what happens once they are exhausted, they said. The government is now also seeking a certificate of origin, a requirement only introduced two months ago.“Silver imports are now under restricted import category. Import requests are being processed as per norm,” according to a spokesperson from India’s commerce ministry. The licensing regime followed an earlier move by Prime Minister Narendra Modi’s government to more than double import duties on gold and silver as higher energy costs stemming from the conflict in the Middle East weighed on the rupee and foreign-exchange reserves.The bottleneck could worsen ahead of India’s peak buying season. Jewelers typically begin replenishing inventories from July ahead of festivals in October and November, and the wedding season from November through March.“We expect things to get tighter as wedding-season buying picks up,” Augmont Enterprises’ Chainani said.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.