Mumbai: The demand for Silver in India has fallen rapidly since the start of the current fiscal year, said Indian Bullion and Jewellers Association (IBJA) in its latest report. The association cites scarce monsoon and buoyant stock markets as the key factors that led to the sudden drop in demand for Silver in the country, reports metal.com.

The country’s silver imports had totaled nearly 4,000 tons during the fiscal 2013-’14, averaging nearly 330 tons per month. However, the average silver imports during the initial four months of the current fiscal dropped drastically to around 70-80 tons per month, almost 75% lower when compared with average imports during previous fiscal.

According to Prithviraj Kothari, Vice President, IBJA, the delayed and deficient monsoon has dampened the demand this year. Despite low prices, there are no buyers in the market, he added. The retail outlets under the association have reported huge fall in silver jewellery demand since that beginning of this fiscal in April ’14.

The prolonged dream run in Indian stock markets have forced many investors to move away from commodities like gold and silver. The investment demand for silver has dried up, despite analysts’ observation that time is ripe to consider silver as a good instrument to park funds.

IBJA also declared that industrial demand for silver has not yet showed sign of improvement as the Indian economy is yet to recover completely. Moreover, silver merchants in the country reported huge drop in sale of utensils and deities made of silver. The export demand for silver tableware too has declined sharply during this fiscal, IBJA noted.