While silver fell 14% in international markets between May 13 and May 18, Indian prices dropped only 6.6% — cushioned by higher landed costs and the new import restrictions. According to reports from The Financial Express, silver closed at ₹2,87,467 on May 13, then declined to ₹2,68,147 on May 15 before settling at ₹2,68,129 on May 18. The Indian government implemented three significant measures to control the import of precious metals, particularly silver, which could completely change the dynamics of the silver market in the country.
The first major change was a revision of the import duty structure, with India increasing effective import duties on gold and silver by 9 percentage points — from 6% to 15% — including a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC). As reported by The Financial Express, at prevailing MCX silver prices near ₹2,90,000/kg, this translates to an incremental cost burden of approximately ₹26,100/kg on every imported bar. The Directorate General of Foreign Trade (DGFT) and the Commerce Ministry revised the import policy, reclassifying silver bars with 99.9% purity from the 'Free' to the 'Restricted' import category.
The third move came from MCX, which revised its Good Delivery Norms to enable domestic silver refiners to deliver silver on its platform. According to reports from The Financial Express, this includes changes to BIS-Standard Gold/Silver norms, eligibility criteria, and the empanelment procedure for refiners. Dr. Renisha Chainani from Augmont notes that this is the supply-side response to the demand-side restriction, building a domestically sourced silver delivery pipeline through the exchange mechanism to replace the import channel being shut down.
Silver futures (03JUL2026) are trading at ₹2,74,549 on May 19, while the spot price on May 18 closed at ₹2,68,129. As reported by The Financial Express, retail silver prices are likely to remain elevated well above the pre-May 2026 trajectory, regardless of any correction in COMEX prices. Narinder Wadhwa from SKI Capital Services states that the recent regulatory measures are likely to keep domestic silver prices relatively elevated compared to international prices, even if global prices soften. The compounding effect of the duty wall and import restriction creates a structurally bullish domestic silver price environment across multiple timeframes.
