MMTC plans to import 50% more silver in FY12

State-run MMTC today said it plans to import 50% more silver this fiscal at 1,200 tonnes to encash on the growing appetite for investments in the white metal in the domestic market.  

The company also expects gold import to increase to 275 tonnes this year from 245 tonnes last year. "We plan to import 1,200 tonnes of silver in the 2011-12 fiscal, up from 800 tonnes in a year-ago period," a senior MMTC official said.

Besides gold, the investment demand for silver, too, has been rising as hedge against inflation in the domestic market, the official said. India, the world's largest consumer of gold and silver, buys more than 4,000 tonnes of silver and over 960 tonnes of gold anually.

Majority of silver in India is used in production of ornamental items like jewelry, utensils and gift articles.

The domestic silver prices today rose to all-time high of Rs 64,450 per kg, up by Rs 150 from the previous day. Also, gold prices made a new record at Rs 21,945 per 10 grams. 

Silver prices have been touching new peaks in the last three consecutive sessions because of robust demand amid short supply of silver in the global market, experts added.