SURAT: The import of rough diamonds in the first two months of current fiscal has dipped by a whopping 24% with the Indian diamond industry facing liquidity crisis, reduced bank finance and currency fluctuations.
According to data collated by the Gems and Jewellery Export Promotion Council (GJEPC), the import of rough diamonds in April-May 2015 declined by 24% to $2.69 billion compared to $3.5 billion during the same period in previous year. Import of rough diamonds in May alone declined by 14% to $1.3 billion.
At the recently concluded presidents meeting of the World Federation of Diamond Bourses (WFDB) and the International Diamond Manufacturers Association (IDMA) in Tel Aviv, leaders discussed issues of pressing importance across the diamond pipeline.
The Israel Diamond Exchange (IDE), Israel Diamond Manufacturers Association (IDMA) and the Gems and Jewellery Export Promotion Council (GJEPC) were of the opinion that major rough diamond producers should reduce rough sales to help bring stability to the trade. The reduced supply will restore profitability for the diamond industry’s midstream including small and medium diamantaires.
Ernie Blom, president of the WFDB, said, “We are our own enemies because no one is forcing us to buy these rough diamonds. We are partly to blame for the astronomically high prices of rough, but producers must also understand that this is a symbiotic relationship. They shouldn’t chase short-term profits at the expense long-term sustainability of the industry.”
Dinesh Navadia, president, Surat Diamond Association (SDA) said, “Diamantiares in Surat and Mumbai have already started reducing the rough diamond purchase from the miners. The manufacturing capacity for polished diamonds has reduced by 50% in most of the big, small and medium units. We are hopeful that the industry will return to normal before the Christmas season sale.”
