GJEPC appeals to industries to stop import of rough diamonds

In a statement, GJEPC said that the demand for loose polished diamonds and jewellery from large economies like USA and China have been affected over the last many quarters.

“…Due to which, our exports have declined by 25 per cent from January till August, with a similar trend (witnessed) in September also… our inventories in polished diamonds have increased over the last few months and prices are softer as an effect of this mismatch in demand vs supply,” it added.

“We have already reached out to all the major diamond mining companies, sharing with them the short-term challenges… and requesting them to support the industry… Today, the situation was once again reviewed by more than 100 manufacturers, traders, importers and exporters and office-bearers of our trade associations of Mumbai and Surat,” the GJEPC said.

When contacted, Vipul Shah said, “The group was of the opinion that to protect the interest of the industry, particularly small and medium enterprises, we need to take additional measures. It was suggested that members may be advised to halt import of rough diamonds from October 15 to December 15. It was assessed that halting imports will help the industry better manage the balance between demand and supply… It was also decided that the situation will be reviewed in the first week of December.”

Gujarat GJEPC chairman Vijay Mangukiya added, “We urge for measures to be taken to support the artisans, ensuring that there is no adverse impact on their livelihoods. All concerned are requested to consider this appeal in the larger interest of the industry and voluntarily cease import of rough diamonds.”

A diamond factory owner in Surat, on condition of anonymity, said, “We are struggling as the demand for loose natural diamonds in USA and China is poor. We will stock rough diamonds to run our factories till Diwali… The polishers are the spinal cord of our industry, so we have to take care of them.”