Rough diamonds Image credit: DTC Botswana
The Gem and Jewellery Export Promotion Council of India along with four other industry bodies have again issued an appeal to industry members to halt all purchases of diamonds between 10 and 31 July.
It is estimated that about $7bn of rough and polished diamonds have been stuck in India, the world's cutting and polishing capital, since the country went into lockdown on 25 March.
The organizations believe that the moratorium will help preserve inventory values and protect the industry. Recommendations have however allowed members to imports between 1 and 9 July, and can later agree to a voluntary restrain for the rest of the month.
According to the trade organizations, the industry's self-discipline has helped to reduce the industry’s inventory and manage cash flow at a time when businesses across the world are going through disruptions.
The letter to the members also says that GJEPC and others will be writing to large diamond miners urging continued flexibility and restraint at their Sights and sales.
In the Surat cutting centre, rules were eased recently allowing a limited number of artisans to return to work with strict social distancing, but the number of COVID-19 infection has surged of late, leading to shutting down of the manufacturing units.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
