On Monday, the government allocated a quota of 180 tonnes for gold imports from the UAE at concessional duty under the Comprehensive Economic Partnership Agreement (CEPA). However, a traders’ association claimed that nearly 1,400 applications were rejected in the process.
The Directorate General of Foreign Trade (DGFT) received an unprecedented 2,960 applications for the 2025-26 gold import quota, nearly 25 times the available allocation. Under CEPA, gold imports attract a reduced duty rate of 5%.
Traders noted that the concessional import scheme typically attracts high demand, but this year’s surge marked a 253% increase from the previous year.
According to Surendra Mehta, national secretary of the Indian Bullion and Jewellers Association, DGFT applied a criterion requiring an average annual turnover exceeding ₹25 crore over the past three financial years when allotting quotas. “This contradicts DGFT’s own June 2023 public notice, which had removed the turnover condition,” Mehta stated. As a result, around 1,400 applications were rejected.
Only one application per trader was accepted, with priority given to those who utilized at least 80% of their CEPA quota in FY25. Scheduled commercial banks, allowed to import gold directly as nominated agencies, were not allocated separate quotas.
Since its launch in 2022, the concessional import programme has grown in popularity. However, market insiders noted that many new applicants this year had no prior history in gold trading.
