The country's precious metals (gold and silver) refining sector has high expectations from the 2026 budget. MMTC-PAMP, a leading refining company in India, has urged the government to equalize the duties between domestic refiners and imported bullion (refined gold and silver) to prevent the Indian industry from being at a competitive disadvantage. Sameet Guha, the company's Managing Director and CEO, stated that the current duty structure has become a challenge for domestic refiners.

Not Limited to MMTC-PAMP

According to Sameet Guha, this problem is not limited to MMTC-PAMP, but the entire precious metals refining sector has been facing this duty disparity for a long time. The difference in duties levied on the import of raw gold and silver (dore) through the SEPA route and the import of refined bullion puts domestic refiners at a disadvantage. This results in imported refined bullion often being cheaper, reducing the competitiveness of Indian refiners.

He explained that the Free Trade Agreements (FTAs) signed after SEPA have excluded bullion from the lower duty bracket. The industry wants future agreements to also exclude gold and silver from such concessions to protect the domestic industry.

Guha stated that if India is to become a global leader in refining and produce more LBMA (London Bullion Market Association) accredited refiners, the government needs to provide input-related benefits. This benefit can be provided by increasing the duty differential or through policy changes. This will incentivize domestic companies to increase investment, achieve better returns, and improve their technological capabilities.

Duties on Gold and Silver

Currently, a 6% duty is levied on gold and silver dore, while refiners receive a differential of 0.65%, bringing the effective duty down to 5.35%. MMTC-PAMP primarily imports gold in the form of dore. In the financial year 2024-25, the company imported approximately 40 tons of gold and 50 tons of silver. During April-December of the current financial year, the company imported 36 tons of gold and 60 tons of silver, indicating strong demand for silver. The industry believes that if the government addresses this duty-related disparity in the 2026 budget, it will give a significant boost to the domestic refining sector and could help India emerge as a global refining hub.

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