Gold Smuggling Plummets at Amritsar Airport as Traffickers Shift to High-Profit Thai Ganja
In a significant shift in illicit trade patterns, gold smuggling at Punjab's Amritsar airport has registered a sharp decline, while trafficking of hydroponically grown ganja from Thailand has surged dramatically. This trend reversal comes as gold prices in India hit an all-time high of Rs 1.6 lakh per 10 grams, yet profit margins for smugglers have dwindled to nearly negligible levels.
Dramatic Drop in Gold Seizures
According to customs department figures, gold confiscations at Amritsar airport have plummeted by 80% in the current financial year. During the 2024-25 financial year, authorities seized approximately 4.5 kilograms of smuggled gold. This year, however, seizures have dropped to just 950 grams, indicating a substantial reduction in smuggling activity.
Officials attribute this decline primarily to two key factors: the reduced price difference between gold rates in Dubai and India, coupled with a significant cut in customs duty. The total customs duty on gold, which previously stood at 18% including cess, has now been reduced to 8%. "This has significantly reduced the incentive for smugglers," explained a customs official. "Additionally, the price gap between Dubai and India has narrowed considerably, making smuggling far less profitable."
Shrinking Profit Margins Discourage Gold Traffickers
The profit margin for gold smugglers has reduced sharply from approximately 10% during 2021-2023 to just 2% currently. A source within the customs department revealed that during the peak smuggling period, traffickers would invest Rs 50-70 lakh per kilogram of gold and could save Rs 4-5 lakh per kilogram through duty evasion.
"Today, one kilogram of gold costs nearly Rs 1.5 crore, while profits have dropped to barely around Rs 3 lakh," the source added. "This shrinking margin has discouraged smugglers from continuing with gold trafficking, despite record-high domestic prices."
Kashmir Singh Rajput, national president of the Akhil Bhartiya Swarankar Sangh, confirmed that despite the decline in smuggling, there is no shortage of gold in the domestic market. "Many people are selling gold they had stored earlier due to record-high prices, so it is available on demand," he stated. The organization advocates for the rights of small-scale jewellers and goldsmiths, frequently highlighting issues such as high gold taxes and lack of government support.
Ganja Smuggling Surges with Massive Profit Margins
In stark contrast to the declining gold smuggling, ganja seizures at Amritsar airport have increased by 82% in the current financial year. From 31.5 kilograms seized in three cases during 2024-25, authorities have confiscated 58 kilograms in 14 cases so far this year.
The primary driver behind this shift is the massive profit margin offered by ganja smuggling, which is nearly 100 times more lucrative than gold trafficking. Sources indicate that hydroponic ganja is purchased in Thailand for Rs 75,000-Rs 1 lakh per kilogram. Once smuggled into India, its price rises to Rs 10-15 lakh per kilogram. By the time it reaches end consumers, the price soars to nearly Rs 1 crore per kilogram.
"Unlike gold, ganja requires relatively low investment but yields exceptionally high returns," a source explained. "This makes it an extremely attractive alternative for traffickers who previously focused on gold."
Innovative Concealment Techniques and Growing Demand
Customs officials report that smugglers are employing increasingly innovative concealment techniques to evade detection. Recent seizures at Amritsar international airport have revealed ganja hidden inside boxing punching bags, shampoo bottles, and moisturizer containers, all discovered during routine security checks.
There is also growing demand in India for ganja sourced from Thailand, as it is believed to contain higher levels of tetrahydrocannabinol (THC), the psychoactive compound in cannabis. Thailand's decriminalization of cannabis in 2022 has made it a significant source of high-quality variants of the narcotic.
Ironically, while gold smuggling cases often allow for easier bail, ganja trafficking falls under the stringent Narcotic Drugs and Psychotropic Substances (NDPS) Act, making bail far more difficult to obtain. Despite this increased legal risk, traffickers appear increasingly willing to take the chance due to the substantially higher profit potential.
Market Implications and Future Outlook
Rajput of the Akhil Bhartiya Swarankar Sangh warned that gold prices could rise further if global tensions persist and if trade tariffs imposed by US President Donald Trump continue to impact international markets. However, the current smuggling trend suggests that even higher gold prices may not revive smuggling activity unless profit margins improve substantially.
The shift from gold to ganja smuggling represents a significant challenge for law enforcement agencies, requiring different detection methods and investigative approaches. Customs officials at Amritsar airport are now focusing more resources on identifying concealed narcotics, even as they continue to monitor for precious metal smuggling.
This changing pattern of illicit trade highlights how economic factors, including duty structures and international price differentials, can dramatically alter smuggling dynamics. As profit margins continue to dictate trafficker behavior, authorities must remain vigilant to emerging trends in contraband trade.
