A group of refiners in India – including the country’s largest, MMTC PAMP – are in early talks with the government over a change of regulations that could see the export of bullion from the country, sources have told FastMarkets.
The refiners in question – while their number is not known, the group is thought to be large – have held meetings with New Delhi about the possibility of exporting gold in bullion form. This is currently not permitted to any of the country’s 27 refineries – gold can currently be exported only in value-added form such as jewellery.
Conversations continue between the relevant authorities; sources suggested that discussions have so far been positive.
While no change to national regulations is likely in the near term, they added, export licences could for the first time form part of a more comprehensive gold policy that the Indian government plans to announce next year. This will include elements such as a spot exchange, hallmarking and the monetisation scheme, market observers suggested.
This will disappoint those refiners who are sitting on large inventories and have shuttered operations for fresh material until the market improves.
India has been battling multiple issues so far this year, with the domestic market at large discounts to the international price. At FastMarkets’ last assessment, the discount was $15-20 per ounce to London prices.
(Additional reporting by Archie Hunter, editing by Mark Shaw)