Kamal Ghorui
Guha noted that the issue extends beyond MMTC-PAMP and affects the entire refining ecosystem, pointing to a clear disparity in duties, particularly under the SEPA route, between dore imported for refining and finished bullion brought into the country. According to him, this difference in duty structures materially weakens the position of local refiners, even though policymakers appear to be conscious of the problem.
He added that free trade agreements concluded after SEPA have kept bullion outside their scope, and the industry is hopeful that upcoming FTAs will adopt a similar framework by excluding gold and silver from concessional duty regimes.
Guha said that strengthening India’s position as a global refining hub and expanding the pool of London Bullion Market Association-accredited refiners would require policy support in the form of input-linked incentives through duty differentials, either under FTAs or by widening the existing gap. “We would request the government to see what they can do in terms of either input-related benefits, in terms of duty differentials…which will really encourage local refiners to invest in the refinery and get ROIs and up their refining capacity and capability to a global level,” he said.
He also said MMTC-PAMP is willing to assist the government or relevant ministries with technical inputs, drawing on its experience of operating an LBMA-accredited refinery.
At present, customs duty on dore is 6 per cent for both gold and silver, with refiners receiving a differential of 0.65 per cent, resulting in an effective duty of 5.35 per cent. As a refiner, MMTC-PAMP mainly imports gold in dore form, with gold and silver imports traditionally split in a 1:1 ratio. In 2024-25, the company imported about 40 tonnes of gold and 50 tonnes of silver.
Between April and December of the current financial year, MMTC-PAMP brought in 36 tonnes of gold and 60 tonnes of silver, reflecting particularly strong demand for silver, Guha said.
