India’s silver imports hit record in Feb – Gulf Today

India’s silver imports hit record in Feb – Gulf Today

A silver trader weighs his silver ornaments inside his shop in the western Indian city of Ahmedabad, India. Reuters

India’s silver imports surged by 260 per cent in February to a record high, as lower duties encouraged large purchases from the United Arab Emirates (UAE), government and industry officials told Reuters, adding they were on track to increase by 66% this year.

Higher demand in India, the world’s biggest silver consumer, could support global prices trading near their highest in three years.

India imported a record 2,295 metric tonnes of silver in February, up from 637 tonnes in January, said a government official, who declined to be named as he was not authorised to talk to the media.

In February, India imported 939 tonnes from UAE, as traders bought large volumes to benefit from a lower duty, the official said.

The country’s silver imports surged to 2,932 tonnes in the first two months of 2024 compared to 3,625 tonnes for all of 2023, according to provisional data from the Ministry of Commerce and Industry.

The imports in the first two months of 2024 were much more than required and pushed Indian prices into a discount, forcing banks to nearly stop imports in March, a