Shares of jewellery-makers like Kalyan Jewellers and Titan tumbled up to 6% after reports indicated that Indian banks have halted gold and silver import orders for overseas suppliers. Tons of precious metals are now stuck at customs due to the lack of a formal government order authorizing bullion imports. Without fresh imports, Indian jewellers could face supply shortages, as the country relies on imports to meet nearly all its demand.
In contrast, MMTC, India’s largest PSU trading company, rallied 16% amid market rumors that it was allowed to import gold while other applications were rejected. The uncertainty surrounding the timing of the Directorate General of Foreign Trade’s (DGFT) order has led banks to stop new import orders. More than five tons of gold and around 8 tons of imported silver are currently stuck without customs clearance.
Surendra Mehta, Secretary at the India Bullion and Jewellers Association, emphasized the need for clarity to ensure imports resume, especially ahead of the anticipated demand on Akshaya Tritiya.
