No further suspension of diamond imports

The Gems and Jewellery Export Promotion Council, an apex body for gems and jewellery business in the country, has withdrawn its appeal for one-month suspension of rough diamond imports, said a council press release.

The one-month suspension (November 25-December 24) was aimed at stemming the indebtedness of domestic diamond merchants and their bankers due to import financing. It was also intended to stabilise prices of polished diamonds by curtailing their supplies.

The initial appeal was made at the height of the global credit crisis to enable Indian diamond merchants and their bankers to obtain the necessary clarifications from industry stakeholders, industry financing institutions, rough producers, government and banking authorities, overseas clients and others.

The GJEPC will continue, and even intensify, its efforts to secure the ‘softest possible’ landing from the crisis, and will prepare the diamond and jewellery sectors for renewed growth when the global conditions stabilise. “The council will continue to monitor the global situation very closely and will not hesitate to announce new measures if and when the situation warrants,” the release said.

Vasant Mehta, chairman of the council added in the release that the global situation has not yet improved and the US holiday season jewellery sales were disappointing.

Mehta further noted that the industry is committed to free and open markets and the fierce competition among and within manufacturing centres has caused an alarming shrinkage of margins.

The sudden fall in global diamond demand, and the unprecedented volatility in prices, has enhanced the levels of commercial and financial risks facing our members. The GJEPC will take all possible steps to mitigate the risks for our members and to increase our endeavours to promote India’s diamond and jewellery sector globally.