Following a voluntary suspension of rough diamond imports, the Indian diamond industry plans to resume its import activities. Starting from December 15, the diamond bourses will give the go-ahead to importers but urge continued caution so as not to upset the balance of supply and demand.
From October 15, the Gem and Jewellery Export Promotion Council, Mumbai Diamond Merchants Association, Bharat Diamond Bourse, Surat Diamond Association, and Surat Diamond Bourse collectively urged for the cessation of rough diamond imports. The supply had dwarfed demand in India and this was leading to a backlog at diamond facilities. Now, after two months, the industry feels ready to welcome imports once more.
“The suspension has also resulted in a positive impact on the prices of polished diamonds over the past two months,” said GJEPC chairman Vipul Shah, ET Bureau reported. India conducts around 90% of the world’s diamond cutting and polishing, the Economic Times reported, and so an imbalance in supply and demand will affect the global jewellery industry.
Despite the tentative resumption in imports, other global factors continue to threaten business as usual in the Indian diamond industry. The recent G7 decision to restrict Russian diamond imports from the New Year and economic challenges in major western economies are set to keep Indian diamond businesses on their toes into 2024.
Copyright © 2023 FashionNetwork.com All rights reserved.
