Diamond industry representatives appeal for halting import of rough diamonds amid fall in prices

An appeal was also made to Diamond Mining companies, requesting them to gauge the real state of demand and provide raw unpolished diamonds accordingly citing the need for the midstream to transmit real levels of demand by translating the need for supply of Rough Diamonds to all mining companies.

Industry representatives have made a request for a temporary suspension of rough diamond imports from October 15 to December 15, 2023, in order to protect small and medium-sized enterprises. The group agreed that more measures were needed to protect the industry, particularly its smaller players. They suggested that members be advised to halt the importation of rough diamonds during the specified period mentioned in the appeal.

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Representatives from the diamond industry also claimed that the demand for loose polished diamonds and jewellery from large economies such as the USA and China has been materially affected over the last many quarters, on the back of all-time highs of 2021 & 2022, with a visible slowdown in orders.

According to the appeal, there has been a 25 percent decrease in India's diamond exports between January and August 2023. The trend is continuing in September, with representatives reporting an increase in inventories of polished diamonds and a drop in diamond prices due to a supply-demand imbalance.

Representatives stated that halting imports of rough diamonds will help the industry "better manage the balance between demand and supply", thereby protecting the value of assets and increasing consumer confidence.

An appeal was also made to Diamond Mining companies, requesting them to gauge the real state of demand and provide raw unpolished diamonds accordingly citing the need for the midstream to transmit real levels of demand by translating the need for supply of Rough Diamonds to all mining companies.

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The appeal mentioned that the Gem and Jewellery Export Promotion Council is also working to create demand in significant markets with the help of all other trade bodies, Govt. of India,  the Natural Diamond Council, the rough diamond mining companies and like-minded bodies in the USA.

Additionally, the appeal also called for measures to be taken to support the artisans during this period, thereby ensuring that there is no adverse impact on their livelihoods.