India Ends Ban On Rough Diamonds Imports
The Indian diamond industry lifted its voluntary ban on the import of rough diamonds on December 15, as market conditions improved and prices stabilized.
The two-month prohibition began on October 15th.
The announcement was made by the Gem and Jewellery Export Promotion Council of India (GJEPC), which, along with the Bharat Diamond Bourse, Mumbai Diamond Merchants Association, Surat Diamond Bourse, and Surat Diamond Association, represents the Indian diamond sector.
The two-month prohibition began on October 15th.
The announcement was made by the Gem and Jewellery Export Promotion Council of India (GJEPC), which, along with the Bharat Diamond Bourse, Mumbai Diamond Merchants Association, Surat Diamond Bourse, and Surat Diamond Association, represents the Indian diamond sector.
Photo: Rough diamond found in India (Source: Youtube Screenshot)
Ban On Rough Diamonds Imports
The restriction was implemented in an attempt to correct the supply and demand imbalance that resulted from falling polished prices and declining demand for natural diamond jewelry in the two biggest markets in the world, China and the United States.
The improvement in market conditions is the reason Indian officials are lifting the restriction.
The two-month "voluntary ban" on rough diamond imports has had a good effect, according to Colin Shah, MD of Kama Jewelry.
First, the price stability. He added, "Secondly, the inventory has eased".
The demand for diamonds in the global markets has significantly increased as Christmas and New Year's Eve began knocking on the door. The wedding season has caused a 10% increase in diamond prices domestically. There's more consumption, Shah said.
According to Colin Shah, the general geopolitical and economic circumstances will continue to have an impact on pricing dynamics throughout time.
In addition to boosting customer trust, the GJEPC and other industry groups decided to stop importing rough diamonds to assist the industry in maintaining a balance between supply and demand as well as safeguarding asset value.
"We believe the suspension has helped bring stability to the Indian diamond industry, which had been impacted by low demand", stated GJPEC Chairman Vipul Shah. Over the previous two months, the suspension has also had a favorable effect on polished diamond prices.
As the demand for natural diamonds progressively recovers in the major markets, including the United States, China, the Middle East, and Europe, the industry anticipates that prices will be sustainable and stable in the upcoming months.
In addition to the miners and diamond producers who "cooperated and showed confidence in the decision taken by the Indian industry and voluntarily suspended their sales," the GJEPC praised associations and industry stakeholders for their support and collaboration, according to National Jeweler.
In light of the persistent geopolitical tensions and economic uncertainties, the Indian groups are advising the industry to exercise caution despite the improvements.
Shah declared, "We will keep collaborating closely with the diamond miners to maintain a balance between supply and demand as well as to launch successful marketing initiatives to increase consumer confidence and demand for natural diamonds".
"We have faith that the Indian diamond industry will prosper in the future with our teamwork and tenacity", he added.
