India permits large silver imports despite weak domestic demand

India has authorised imports of about 6,500 metric tons of silver for the coming six months, according to Reuters, as authorities prepare for seasonal buying. The permits were granted despite dealers’ reports that jewellery and investment demand remains subdued.

India obtains more than 80% of its silver from abroad, and the new allocation could ease local supply tightness and reduce premiums, Reuters reported. Premiums dropped to 45 cents an ounce on Thursday from as much as $2.50 the previous week; meanwhile, the government has increased import duties on silver and gold to 15% from 6%. Recent restrictions on silver imports had required prior authorisation for additional forms of the metal.