Amid plummeting prices of polished diamonds and a slump in exports of polished diamonds from India, major diamond trade bodies have appealed to their members to halt imports of natural round diamonds for two months from 15 October to 15 December this year .
“It was suggested that members may be advised to halt import of rough diamonds beginning 15 October to 15 December 2023,” a letter signed by Vipul Shah, chairman of Gem & Jewellery Export Promotion Council (GJEPC), said. “It was assessed that halting imports of rough diamonds will help industry better manage the balance between demand and supply, thereby protecting the value of assets and increase consumer confidence. It was also decided to review the situation in the first week of December 2023 and then decide future course of action.” GJEPC is sponsored by the ministry of commerce
Mint has seen a copy of the letter that has other signatories— heads of Bharat Diamond Bourse (BDB) ,located in Mumbai’s Bandra-Kurla Complex, Surat Diamond Bourse (SDB), Mumbai Diamond Merchants’ Association (MDMA) and Surat Diamond Association .
“India’s exports of polished diamonds have fallen by more than 25% in the January-August period as demand for loose polished diamonds and jewellery from key consumers like US and China has been materially affected, which is why we have appealed to our members to halt imports of roughs,” Shah told Mint. “Prices of polished are down by 15-20%,” he added
Asked whether the fall in prices were owing to the influx of cheaper lab grown diamonds (LGD) into major consuming markets like US and China , Shah said the associations’ appeal had “nothing to do with LGD.
Shah said similar appeals were made in 2019, just before the onset of the covid pandemic and the Great Financial Crisis of 2008-09 . India is the world’s largest processor of rough diamonds , cutting and polishing over 90% of the world’s rough diamonds.
India exported cut and polished diamonds worth a provisional $7 billion between April and August (FY24) which was down by 30.27% from the same period of the previous fiscal year (FY23). Exports of polished LGDs stood at $562.5 million in the five months through August , down 27% from a year ago.
The major source of roughs are DeBeers , Rio Tinto and Alrosa , before the Ukraine war .
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Updated: 26 Sep 2023, 11:23 PM IST