Silver Prices Surge 8% After India Hikes Import Duty to 15%

Silver prices in India witnessed a sharp rally on May 13, 2026, following the government's decision to increase customs duty on silver imports from 6% to 15%. This move, aimed at reducing India's trade deficit and supporting the rupee, was compounded by escalating geopolitical tensions in the Middle East and concerns over global inflation.

According to bullion market experts, the duty hike is expected to push domestic bullion prices further, potentially weighing on jewellery stocks and softening consumer demand. Prithviraj Kothari, President of the India Bullion and Jewellers Association (IBJA), noted that higher duties would increase prices. Manav Modi, a commodities analyst at Motilal Oswal Financial Services Ltd, explained that the move would help narrow the trade deficit and support the rupee, which has been trading at all-time high levels.

Silver prices across major Indian platforms such as IBJA, MMTC-PAMP, Bullions.co.in, and MCX saw significant jumps. For example, IBJA's silver price rose to Rs 2,86,850/kg from Rs 2,64,867/kg the previous day. Similarly, MMTC-PAMP and Bullions.co.in recorded strong increases. The broad-based rise reflects strong global cues, geopolitical tensions, and the impact of the higher customs duty.

The U.S. consumer inflation rate accelerated to 3.8% in April, driven largely by rising energy costs linked to the Middle East conflict, further influencing silver prices.

**Silver Price Comparisons (May 13 vs May 12, 2026)**

| Source | May 13, 2026 Price | May 12, 2026 Price | Change | |----------------------|--------------------|--------------------|--------------| | IBJA Silver (999) | Rs 2,86,850 | Rs 2,64,867 | +Rs 21,983 | | MMTC-PAMP Silver | Rs 3,16,210 | Rs 2,88,760 | +Rs 27,450 | | Bullion Silver 999 | Rs 2,96,060 | Rs 2,79,570 | +Rs 16,490 | | MCX | Rs 2,86,627 | Rs 2,66,109 | +Rs 20,518 |