Demonetisation: Rough diamond imports may fall 30%

Processors expect combined imports of less than 14 million carats in November-December

Rough diamond imports are likely to decline by up to 30% in November-December due to weak demand for ornaments following demonetisation.

“Rough diamond imports may decline by up to 30% in November followed by a similar fall in December,” said Mehul Choksi, chairman and managing director, Gitanjali Gems.

The Gems and  Jewellery Export Promotion Council (GJEPC) estimates India imported 6.43 million carats of rough diamonds in November 2015 and 15.05 million carats in December 2015.

Imports of rough diamonds declined 16.17% to $14 billion in 2015-16.

This year, diamond processors expect combined rough diamond imports of less than 14 million carats in November-December. November imports are projected to decline by 25-30% to 4.5-4.8 million carats. 

“The trade in lower value rough diamonds is experiencing a temporary slowdown due to demonetisation, but demand across the rest of the product mix is healthy. Sales were significantly higher than those for the equivalent cycle in 2015,” Bruce Cleaver, chief executive officer, De Beers Group, said in a statement on Tuesday.

De Beers’ sale of rough diamonds

De Beers’ rough diamond auctions on December 12 posted a sharp increase from the $248 million sales during its December 2015 auction. India cuts and polishes 90% of the rough diamonds mined globally.

“Indian diamond processors observe a month of closure after Diwali and completing their overseas orders. They resume work in December and restore full capacity by the first week of January,” said Praveen Shankar Pandya, chairman of the GJEPC.