The Gem and Jewellery Export Promotion Council (GJEPC), the country's umbrella group for the industry, has called on its members not to import any rough
All India Gem And Jewellery Domestic Council, (GJC) the national trade federation for promotion and growth of trade in gems and jewellery in the country. Council (GJC) is not in favor of banning the import of rough natural diamonds until December 15, a top official said.
The GJC board will meet to deliberate on the issue in order to prevent a hardening of the price of the precious stone in the domestic market ahead on festive season, he said.
"Our council's board has decided to discuss the ban and its potential adverse impact on the domestic market during the coming festive season." GJC Vice-chairman Rajesh Bhaiyyaji Rokde told PTI.
GJC represents the interests of over three lakh gem and jewelry businesses across the country and is contemplating writing to the government and GJEPC, which made the decision without considering their views, he said.
The Gem and Jewellery Export Promotion Council (GJEPC), the country's umbrella group for the industry, has called on its members not to import any rough
diamonds for two months from October 15 to clear the current oversupply of rough and polished gems.
"The price of the mass-consumption variety diamonds has risen by 20 per cent last year following the COVID pandemic. The restriction on imports will potentially cause domestic diamond prices to increase by another 10 percent, which could impact consumer demand during the festive season and affect local jewellery businesses," Rokde told PTI.
Moreover, the prices of lower carat varieties of diamond remain high though that of diamonds of 40 cents and above have corrected, he said.
Ashok Begani of the India Bullion and Jewellers Association expects diamond price to stabilise with the two-month-long moratorium on imports.
Industry sources declining to comment officially, said that US buyers have sought assurance from Indian suppliers that their exports do not include Russian rough diamonds.
Russian rough diamonds account for approximately 32 per cent of the total rough imports and Alrosa, a key Russian supplier, is under sanctions.
GJEPC chairman Vipul Shah said the two-month import ban is intended to address the current oversupply of rough and polished gems.
"We must do what is right for the entire industry. We are witnessing falling prices in both rough and polished diamonds. We believe that if we collectively take action to prevent further price declines, it will boost confidence in the entire industry," he stated in his letter.
India processes 93 per cent of the rough diamonds of the world. The estimated export value of the cut and polished diamonds by India was USD 24.24 billion in
2022.