Kerala gold merchants push Centre for recycling policy, bullion banking over duty hikes
Kerala Gold and Silver Merchants Association urges New Delhi to unlock 25,000-30,000 tonnes of household gold via recycling and bullion banking. Trade warns the 6%-to-15% import duty hike fuels smuggling worth ₹20 lakh profit per kg, while India pays ₹12 lakh crore annually to import 800 tonnes.
What happened
Kerala Gold and Silver Merchants' Association · Kerala gold merchants urge government to adopt gold recycling policy and bullion banking rather than raising
Key facts
- 800 tonnes annual imports
- ₹12 lakh crore import cost
- 2,19,890 tonnes global mined gold
- 25,000-30,000 tonnes Indian household holdings
- 12-15% of world reserves
- import duty hike 6% to 15%
- ₹10,200 per sovereign price rise
- ₹20 lakh smuggling profit per kg
- ₹24 lakh with 3% GST
Why this matters
Scout refining, recycling, and bullion-banking platforms in India now—formalization of a 25,000-tonne domestic stockpile creates a rare M&A window before incumbents consolidate.