The world’s largest diamond cutting and polishing centre in Surat is headed for a doomsday following the worst crash in polished diamonds prices in the international market. The prices have fallen 7%-10% due to a severe economic crisis in the key diamond consuming countries coupled with the outbreak of coronavirus pandemic, says a TOI report.
The plummeting of prices comes on the heels of India’s export of polished diamonds crashing by 41% to $1.38 bln in February.
It was in November and December-2019 that the diamantaires had purchased rough diamonds at high prices, anticipating good demand in the international market in 2020. However, the coronavirus outbreak came as a big disruption with export to Hong Kong and China decreasing by almost $1.5 billion during January-February, 2020.
Rapaport Group chairman, Martin Rapaport reportedly told TOI over the phone: “Our heart goes out to Surat and India’s diamond community in these difficult times. We understand that the reduction of prices in the Rapaport Price List is upsetting, but it is important for the buyers to come back to the market as the prices have been adjusted. It is important to note that the Rapaport Price List is used by buyers and not just sellers. As such, buyers require and expect Rapaport to reflect the lower price realities of the market. We cannot misrepresent prices to the benefit of sellers and we must not mislead buyers.”
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
