15% gold duty hike triggers 10-15% volume decline at Senco; smuggling fears mount across jewellery trade

Customs duty jump from 6% to 15% has pushed bullion prices ~10% higher, with Hyderabad rates at ₹16,500/gram. Senco Gold flags 10-15% volume decline as buyers shift to lighter, lower-carat pieces and old-gold exchange rises. MSME exporters strained by ₹28-30 lakh/kg bank guarantees.

— FiledThu, 14 May, 2026, 15:29 IST·First seen Thu, 14 May, 2026, 22:46 IST·Source BL · Consumer & Economy

What happened

Senco Gold · Gold customs duty hike to 15% has lifted bullion prices ~10%, prompting jewellery demand slowdown, shift to lighter and lower-carat pieces, rising

Key facts

  • 15% duty (up from 6%)
  • 10% price rise
  • ₹16,500/gram Hyderabad
  • ₹28-30 lakh/kg bank guarantee
  • 10-15% volume decline

Why this matters

Distressed MSME exporters squeezed by ₹28-30 lakh/kg bank guarantees create selective acquisition openings for organized players seeking export capacity and karigar networks at compressed valuations.