Silver import curbs may squeeze MP’s jewellers, artisans: Trade bodies

Indore: Fresh restrictions on silver imports, part of Centre’s broader effort to tighten control over precious metals inflows and contain the import bill, could hit thousands of jewellers, artisans and rural markets across Madhya Pradesh, trade bodies said.

Smaller traders fear the move may push up prices and disrupt supplies in a state where silver jewellery remains deeply linked to traditional and rural demand.

The concerns were raised by Jewellers Development Welfare Association (JDWA) and echoed by Madhya Pradesh Sarafa Association after Directorate General of Foreign Trade, through notification issued on May 16, shifted imports of silver bars from the ‘free’ to ‘restricted’ category.

Traditional markets such as Indore’s Sarafa Bazaar, with jewellery trade roots dating back to the 18th century and the Holkar dynasty, continue to draw customers from rural and tribal regions where silver remains more widely used than gold in many communities.

“The govt has every right to regulate imports and protect broader economic interests, but policy decisions should ensure that smaller traders and traditional artisans are not disproportionately affected. If access to imported silver gets concentrated among a handful of larger players, procurement challenges could weaken the competitiveness of small jewellers,” said Santosh Saraf, secretary-general, JDWA, MP.

Trade bodies said that any disruption in silver availability or a sudden spike in prices could affect a large ecosystem of traders, workshops and workers linked to the sector.

According to the associations, Madhya Pradesh has more than 15,000 jewellers and over 25,000 artisans engaged in polishing, designing and allied jewellery work.

JDWA has sought a dedicated import quota for MSME jewellers, a simpler approval mechanism and safeguards for traditional and rural silver jewellery sectors.

The trade body said that smaller jewellers were already grappling with GST compliance, hallmarking requirements, rising operating expenses and weak market sentiment and any further pressure on raw material availability could intensify stress across the sector.