Overview
- The stoppage, which began April 1, has left bank shipments stuck at ports and airports and cut routine supplies to the world’s No. 2 bullion market.
- After the commerce ministry delayed its annual list of eligible importing banks until April 17, customs did not issue the separate operational order that ports require to release consignments.
- Uncertainty over whether gold and silver remain exempt from the integrated goods and services tax has further slowed deals and kept banks on the sidelines.
- With regular channels frozen, imports have shifted to the India International Bullion Exchange in GIFT City, a route that takes longer and ties up more working capital for traders.
- Tighter local supply has lifted India’s premium over global prices above $20 per ounce, even as international gold has fallen about 12% since late February, and an official said a customs notification with a tax clarification is awaiting approval that could unlock flows and slightly ease April’s trade deficit.