Silver Imports Plummet 91% in India Amid Record-High Domestic Prices

India's silver imports plummeted by 91% in February 2025 to just 110 tonnes, down from a record 1,207 tonnes in January.

The sharp decline was driven by an unprecedented surge in domestic silver prices, which crossed the ₹1 lakh per kilogram mark for the first time on the Multi Commodity Exchange (MCX) in February.

Importers had stockpiled heavily in January anticipating further price gains, but once the prices hit record levels, jewellers and industrial consumers reduced their purchases, making it unprofitable to bring in new stock at elevated international rates.

The rupee's depreciation against the dollar also made imports more expensive, further suppressing demand.