Diamond Processing Industry

India's natural diamond polishing industry is likely to witness a 25-27 per cent decline in revenue to a decadal-low of USD 12 billion this fiscal on lower demand in key markets and a shift in preference to consumer lab-grown diamonds, according to a report released on Wednesday. The decline in revenue is mainly due to muted demand in key export markets of the US and China, a 10-15 per cent fall in diamond prices amid oversupply and a shift in consumer preference towards lab-grown diamonds (LGDs), Crisil Ratings said in its report. Declining for the third fiscal in a row, the natural diamond polishing industry's revenues are estimated to fall 25-27 per cent year-on-year to a decadal low of USD 12 billion this fiscal, it added. The industry's revenue contracted 29 per cent in the previous fiscal and 9 per cent in FY23. The report stated that tepid demand amid decreasing prices has seen diamond polishers limiting the purchase of roughs and have curbed manufacturing. In turn, miners

The supply of rough diamonds in Gujarat's Surat has almost come to a halt after US sanctions on Alrosa -- the biggest diamond miner in Russia, leaving diamond cutting and polishing units high and dry

Angola is the third largest producer of diamonds in Africa and has only explored 40 per cent of the diamond-rich territory within the country, but has had difficulty in attracting foreign investment.

After refusing to budge on diamond prices during much of the pandemic, De Beers and Alrosa PJSC cut prices by 10%

GJEPC says the move will help the industry clear inventory and ease the working capital situation

The $75-billion gems and jewellery sector in India is seeing a big slowdown due to squeeze in working capital loans from financial institutions and increased scrutiny from central agencies after the Punjab National Bank-Nirav Modi scam early this year. Export of gems and jewellery, and import of rough diamonds, have also seen a sharp fall.Financial institutions have not only tightened their guidelines for new lending but stiffened the needed documentation for disbursal of already sanctioned loans. Large companies with a clean record, however, face less pain than small and medium size units for their working capital requirement.The impact has started being felt with a sharp decline in import of raw materials and in export."The ongoing slowdown in diamond business is the consequence of a seasonal decline in demand from both the domestic and overseas markets. The gems and jewellery industry has been facing difficulties in raising working capital from financial institutions after ...