Silver bullion imports by Indian state hit 5-year high during April-Jan FY 14 y/y

NEW DELHI (Scrap Monster): In accordance with the latest official trade data, the Silver bullion imports by the country’s northern state touched a five-year record during the initial ten months this fiscal.ie, during the period from April 2013 to January 2014. The silver imports by the state of Gujarat crossed 1,500 mt during the period, surpassing the earlier record of 1,497 mt achieved during the corresponding ten-month period in 2008-2009.

According to data, silver imports by the Indian state totaled 1,526 mt during April 2013 to January 2014, more than 450% higher when compared with the imports during the similar ten-month period last year. The Silver imports during April to January FY 13 was only 276 mt. The high import duty on gold and comparatively cheaper duty structure of the white metal attracted more customers towards Silver during the period, thus resulting in sudden surge in imports.

However, the unprecedented rise in Silver imports forced the Indian government to hike the import duty on Silver to 15%, thus making it equivalent to that of Gold. The government’s move paid off. The Silver imports dropped drastically during the month of January. The imports slipped by over 60% year-on-year from 101.56 mt in Jan 2013 to 41.57 mt in Jan this year.

As per bullion traders, almost one-third of the Silver imports were achieved much before the restrictions that came into effect in June. Many bullion traders shifted to Silver on account of the extremely high duty on gold. Moreover, there has been an increased industrial demand for Silver in India, especially in electronic, medical manufacturing and atomic industries.