Banks in India have been unable to import gold and silver for the past five weeks in an unusually prolonged disruption that is driving up domestic premiums, raising fears of shortages and, in the process, offering an unexpected boost to the country’s trade balance.

Shipments have been stuck at customs since the start of the financial year on April 1, ensnared by administrative bottlenecks and a lack of clarity over taxes, traders with direct knowledge of the matter told Bloomberg.

Banks were unable to buy in the first half of April as the commerce ministry was delaying the publication of its annual list of banks eligible to import precious metals. Since the list was issued on April 17, purchases haven’t been possible as the customs authority has yet to issue its own separate clearance order, which port and airport officials require before releasing incoming consignments.

The only way to import bullion since the start of April has been via the India International Bullion Exchange (IIBX), a platform in Gujarat International Finance Tec-City. Flows via the bourse have skyrocketed, with April seeing the highest daily trading volumes in a year and May starting even stronger. However, importing through the IIBX takes longer and ties up working capital, traders said.

Banks are also still seeking clarity on whether gold and silver will be exempted from the integrated goods and services tax, traders said. The metals had been exempt, but it’s unclear whether that will continue, they added.

India’s department of financial services and the customs department didn’t respond to an email seeking comment to Bloomberg.

The disruption in gold imports is likely to have a positive impact on the country’s trade balance, with bullion India’s largest import item after oil.

The import halt is “mildly positive for India’s trade balance and current-account deficit for April”, said Madhavi Arora, an economist at Emkay Global. Gold’s share in the annual import bill has risen from an average of around 7 per cent to above 9 per cent in the financial year through March 2026, she said.

Lenders in India are no strangers to occasional hiccups in importing precious metals, but the current delays are risking a shortage in the local market. Jewellers are seeking to restock following the Akshaya Tritiya festival, an auspicious time to buy gold.

“The duration of the import halt is unusual,” said Sunil Kashyap, managing director at trader FinMet Pte Ltd. The situation is getting tighter,” he added, as jewellers look to buy after the festival to take advantage of a drop in international prices.