Gold price: Indian banks have temporarily stopped placing new orders to import gold and silver from overseas suppliers. This is because the government has not yet issued a formal order allowing bullion imports for the new financial year, news agency Reuters noted. As a result, several shipments of gold and silver are currently stuck at customs and cannot be cleared.

India depends heavily on imports to meet its gold and silver demand. It is the world’s second-largest consumer of gold and the biggest buyer of silver. Without fresh imports, the country could soon face supply shortages. At the same time, weaker demand from India may put some pressure on global gold and silver prices. On the positive side, lower imports could help reduce India’s trade deficit and support the rupee, which has been one of the weaker Asian currencies this year.

Typically, the Directorate General of Foreign Trade (DGFT) issues a notification at the start of each financial year. This order lists the banks authorised by the Reserve Bank of India to import gold and silver. The previous order, issued in April 2025, expired on March 31, 2026. Banks were expecting a fresh directive in early April, but it has not been released yet.

ALSO READ: Akshaya Tritiya 2026 sparks festive rush: Jewellers launch gold lock-ins, diamond discount offers; details here

Due to this delay, more than 5 tonnes of gold and about 8 tonnes of silver are currently stuck at customs without clearance, market sources told Reuters. Banks have stopped placing new orders because there is no clarity on when existing shipments will be cleared. Dealers say it does not make sense to import more when earlier consignments are already held up.

Meanwhile, India’s gold demand has already been slowing. In 2025, demand dropped to 710.9 tonnes, the lowest level in five years, according to the World Gold Council. Existing inventories are also reducing, and the market is increasingly relying on exchange-traded funds (ETFs), where investors have been withdrawing money.

Industry experts say the situation needs to be resolved जल्द, especially with Akshaya Tritiya approaching—a key festival for gold purchases in India. If imports do not resume soon, supply shortages could push up premiums in the domestic market.

Some traders believe the delay may be linked to rising import costs. Due to the ongoing Iran conflict, prices of oil, gas, and fertilisers have increased, which could raise India’s overall import bill. In such a situation, the government may be trying to limit gold and silver imports to control the trade deficit.

What does it mean for investors, jewellery buyers

For jewellery buyers, this could translate into a tighter supply in the domestic market, especially with Akshaya Tritiya approaching — a peak buying season. If the delay continues, jewellers may face inventory shortages, which could push up premiums (the extra cost over international gold prices). This means you may end up paying higher prices locally, even if global gold prices remain stable or soften.

ALSO READ: Will gold prices rise after Akshaya Tritiya? What history shows

For gold investors, the impact is slightly more nuanced. In the short term, limited imports could reduce domestic availability and support local gold prices. However, globally, weaker demand from India, one of the largest gold consumers, could put some downward pressure on international prices. This creates a divergence where domestic prices may stay elevated due to supply constraints, even if global trends are softer.

The situation also reflects broader macro factors. The government may be informally slowing imports to manage the trade deficit, especially as rising oil and commodity prices are increasing India’s import bill. While this could support the rupee, it indirectly affects gold availability and pricing dynamics.

Another key point is inventory. Existing stockpiles are already declining, and the market is increasingly relying on ETF outflows to meet demand. If imports don’t resume soon, physical gold availability could tighten further.

Published on: Apr 17, 2026 1:12 PM IST