Diamond prices up by 2-5% in three weeks

(Business Standard) - 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 fertilizers for sowing kharif crops. This time, however, consumers continued buying ahead of Goods and Services Tax (GST) rollout on fears that jewellery would become costlier once the tax is implemented. "The domestic demand for rough and polished diamond has been fairly good in the past few weeks. Hence, the prices of both rough and polished diamonds have risen by 2-5 per cent across all categories," said Pravin Nanavati, Joint Secretary, Gujarat Heera Bourse.