July 7, 2012 5:55:43 am
The diamond industry in Surat has been suffering a major setback over the last few months with a dip in sale of rough and polished diamonds because the Indian rupee continues its downward slide of the past few days and hits an all-time low against the dollar,experts say.
The diamond merchants purchase rough diamonds from the Diamond Trading Corporation at Antwerp and the deals are conducted in terms of the US dollar.
Since the dollar has been gaining more value against the Indian rupee,the merchants end up paying more for the diamonds,affecting their profit margins. Diamond traders have now reportedly stopped buying rough diamonds and this has led to a significant decrease in the production of polished diamonds.
Factory owners have reduced the working hours of the labourers and are operating the factories using the left over stock of rough diamonds.
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According to experts in the diamond business,the demand for polished diamonds have significantly gone down around the world. Two recent exhibitions of gems and jewellery in Hong Kong and Las Vegas received a poor response as well.
We have seen a decrease in the exports of polished diamonds and import of rough diamonds. There is not enough demand for polished diamonds in the market. We hope that the situation will change. During Christmas,we believe that there will be a greater demand. We have requested the diamond manufacturers to control the production sector and not to lay off their workers. We have also asked them not invest more money in rough diamonds to meet the Christmas sale demands, said Surat Diamond Association Secretary Damji Mawani.
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