Diamond prices up by 2-5% in three weeks

Buyers disregard lean season, buy ahead of GST rollout, which would make jewellery costlier by 3-4%

Despite weak demand ahead of the new season, rough and polished diamond prices have risen 2-5 per cent across all varieties during the past three weeks.

Diamond processing activity in India, which was down early this year, revived later with the positive outlook on the Indian economy. Also, wedding season demand coupled with stagnant gold prices boosted jewellery demand from local consumers.

Normally, jewellery demand season ends with the closure of wedding dates around May 31. Rural demand, which makes up around two-third of India's jewellery consumption, also fades with the onset of the monsoon as farmers move to buy seeds and