As the world's biggest diamond cutting and polishing centre in Surat is passing through a tough phase, diamantaires are keeping their fingers crossed over the success of the upcoming India International Jewellery Show (IIJS) 2012 being organized by Gems and Jewellery Export Promotion Council (GJEPC) in Mumbai, the Times of India says on timesofindia.indiatimes.com.
Termed as Asia's second largest jewellery event after Hong Kong International Jewellery show, IIJS has continuously evolved as India's official platform for showcasing the nation's manufacturing capabilities and providing an extensive platform for across-the-board B2B trade.
However, a sharp fall in the polished diamond prices in the past six months and other problems such as the liquidity crisis and the weakening of the rupee have cast a dark shadow on the manufacturing of the glittering gem stones in Surat.
This year, IIJS marks the 29th edition and will be spread over an approximate area of 46,000 sq mt and will have more than 1,800 booths, which would be occupied by an estimated 800 exhibitors from India as well as overseas. Last year, there was a 24 per cent increase in visitor registration and more than 33,000 trade visitors thronged the show in a span of five days from India and abroad.
While the loose polished diamond prices have dropped down by almost 15-20 per cent in Surat and Mumbai markets, the certified polished diamond prices in all the categories have also decreased by 4-5 per cent. This has left a great impact on the diamond manufacturing units, especially the small diamond units.
"There is a price resistance among the overseas buyers. It is not possible for the diamantaires to sell the polished diamonds at discounted rates at the upcoming IIJS show when we know that the rough diamond prices are not going to come down," said Samjibhai Patel, a polished diamond dealer in Mahidharpura diamond market.
Patel said, "There are many small units which have drastically reduced the working hours from 12 to 6 hours a day. It is becoming extremely difficult for these small units to survive."
As per the official figures from the GJEPC, India exported $1.4 billion worth of polished diamonds in June registering a 35 per cent decrease compared to same month previous year. On the other hand, the rough diamond imports fell 26 per cent year on year to $1 billion.
A leading DTC sightholder participating in the IIJS show told TOI, "This year, expectations are very less from the buyers visiting the IIJS show. The polished diamond market has crashed like never before and there is fear of yet another downward crash before the IIJS show."
