Addressing Duty Disparities in Precious Metal Refining: A Call for Government Action

The precious metal refining sector, represented by MMTC-PAMP's CEO Sami Guha, urges the government to address duty disparities that disadvantage domestic refiners amidst free trade agreements. By providing duty differentials, the government can boost India's refining capacity and global standing, allowing local refiners to compete effectively.

The precious metal refining industry faces an uphill battle due to duty disparities that favor imports, says MMTC-PAMP CEO Sami Guha. Speaking on Friday, Guha highlighted the challenge faced by domestic refiners within the ambit of free trade agreements.

Guha pointed to the significant disadvantage posed by the duty structure, especially the differences between Dore imports and refined bullion imports under the Single Euro Payments Area (SEPA). He noted that the government seems cognizant of this ongoing issue.

As industry hopes linger on future trade agreements excluding gold and silver from lower duty structures, there is a call for input-related benefits via duty differentials. Such measures could potentially enhance India's global refining capabilities and increase the number of London Bullion Market Association-accredited refiners.

(With inputs from agencies.)