Indian banks have paused fresh gold and silver import orders as shipments remain stuck at customs due to the absence of a DGFT notification authorising bullion imports for the new financial year.
Over 5 tonnes of gold and around 8 tonnes of silver are awaiting clearance, raising concerns of potential supply tightness in the domestic market.
The disruption comes ahead of Akshaya Tritiya, a key gold-buying occasion, as prices remain elevated and global uncertainties continue to influence bullion demand.
India’s Gold Supply at Risk as Imports Halt Over Missing DGFT Order
More than 5 tonnes of gold and 8 tonnes of silver remain stuck at customs as banks await fresh DGFT authorisation for bullion imports
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Indian banks have paused fresh import orders for gold and silver as shipments of the precious metals remain stuck at customs due to the absence of a formal government notification permitting bullion imports, Reuters reported citing sources.
India, being the world’s second-largest consumer of gold depends heavily on overseas supplies to meet domestic demand. Any prolonged disruption in imports could therefore lead to supply constraints in the domestic market. The instability and war in West Asia have raised further concerns of global supply chain surge in gold prices.
The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, issues an annual notification at the start of each financial year specifying the banks authorised by the Reserve Bank of India (RBI) to import gold and silver. The previous directive, issued in April 2025, remained valid until March 31, 2026. However, banks are still awaiting the updated order for the current financial year, the report said.
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Banks had expected the DGFT to release the notification in early April. With no announcement so far, consignments of more than five tonnes of gold remain held up at customs, according to a source cited by the report. Around eight tonnes of imported silver are also awaiting clearance, the report added.
The uncertainty surrounding the timing of the DGFT notification has prompted banks to suspend new orders from international suppliers. Market participants say placing additional orders makes little sense when previously imported consignments cannot be cleared.
Gold demand in India declined to 710.9 metric tonnes in 2025, marking the lowest level in five years, according to data from the World Gold Council.
Meanwhile, inventories from earlier imports are gradually being drawn down, with the market increasingly relying on sales from exchange-traded funds (ETFs), which are currently witnessing redemptions.
Following the news, the shares of Kalyan Jewellers India fell nearly 6% on Friday. Titan Company's shares too fell and were trading at Rs 4,415.90, down Rs 45.50 or 1.02%.
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Gold Demand Ahead of Akshaya Tritiya
The supply concerns come ahead of Akshaya Tritiya, traditionally considered an auspicious occasion for gold purchases. Since the previous Akshaya Tritiya in 2025, gold prices have surged nearly 60%, generating strong returns for investors.
On the Multi Commodity Exchange (MCX), gold prices have risen about 8% since the start of the year. Persistent inflation concerns and signals from recent US Federal Reserve minutes suggesting interest rates could remain higher for longer have added further uncertainty to the outlook for bullion demand. Gold thrives in a low-interest environment.