Silver Scarcity Threatens India's Jewellery Exports as Prices Soar to Record High
The Gem & Jewellery Export Promotion Council (GJEPC) is addressing concerns over silver scarcity as prices reach a lifetime high of ₹1,85,000 per kg. Despite challenges, India's silver jewellery exports increased by 17.43% in the first six months. Factors contributing to the shortage include US policy changes, increased industrial demand, and import restrictions from ASEAN countries. GJEPC plans to meet with industry stakeholders and approach the government to address these issues.
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In a significant development for India's gem and jewellery sector, the Gem & Jewellery Export Promotion Council (GJEPC) is gearing up to address growing concerns over silver scarcity. This move comes as silver prices hit an unprecedented high, potentially impacting the country's thriving silver jewellery export industry.
Record-Breaking Silver Prices
Silver prices have skyrocketed to a lifetime high of ₹1,85,000 per kg, marking a substantial increase of ₹6,000 in a single day. The precious metal has seen a staggering 106.24% surge in the current calendar year, raising alarms across the industry.
Export Performance and Concerns
Despite the looming challenges, India's silver jewellery export sector has shown resilience:
| Metric | Value |
|---|---|
| Provisional silver jewellery exports (First 6 months) | $596.41 |
| Year-on-year increase | 17.43% |
However, GJEPC chairman Kirit Bhansali has expressed concerns about the impact of the supply shortage on future exports.
Factors Contributing to the Shortage
Several factors are contributing to the tightening of global silver supplies:
US Policy Change: The United States added silver to its list of essential minerals in September, diverting large shipments and affecting global availability.
Industrial Demand: Silver's applications in high-end technology, electronics, solar panels, and batteries are driving up industrial demand.
Import Restrictions: The Indian government has restricted imports of silver and unstudded jewellery from certain ASEAN countries, particularly Thailand, until March 31, 2026. This decision follows a surge in imports from these regions.
GJEPC's Proactive Approach
To address these challenges, the GJEPC is taking a proactive stance:
- Planning meetings with silver jewellery exporters and retailers
- Aiming to gather industry insights and concerns
- Intending to approach the government with a comprehensive industry perspective
Market Implications
The current situation presents both challenges and opportunities for India's silver jewellery export sector:
- Supply Chain Disruptions: Exporters may face difficulties in sourcing raw materials, potentially affecting production schedules.
- Pricing Pressures: The sharp rise in silver prices could impact profit margins and international competitiveness.
- Market Positioning: India's ability to navigate these challenges could strengthen its position as a reliable supplier in the global market.
As the situation unfolds, industry stakeholders will be closely watching the GJEPC's efforts and the government's response to these pressing issues in the silver jewellery export sector.
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