Rough diamond market recession in India will not lead to imports freeze. This was stated by the Chairman of the Gem & Jewellery Export Promotion Council (GJEPC) Vipul Shah.
According to him, the Indian diamond sector will not call for a pause in rough diamond imports despite the current market downturn, but will instead focus on stimulating demand. “An import freeze is not a solution,” he noted. “We have to plan for the long term.” The industry will "work towards marketing spend and promotion," the executive added. This will include collaboration with the Natural Diamond Council (NDC) and the Indian government. In addition, manufacturers have already reduced their purchases of rough diamonds, eliminating the need for industry groups to make recommendations in this regard, Vipul Shah added.
The decline was due to competition from synthetic diamonds and the continued decline in demand for polished diamonds in China. Most Indian diamond manufacturers have maintained production to avoid job losses and to maintain access to rough supplies and credit lines.
At this stage, the demand recovery in mainland China is essential. “Something needs to be done as far as the Chinese market is concerned,” said the head of GJEPC.
Weak retail sales and rising inventories have weighed on Indian diamond producers, whose production cuts have not kept pace with falling orders.
Last year, amid the downturn, the GJEPC and four other Indian industry bodies recommended a two-month voluntary moratorium on rough diamond imports from October 15 to December 15. This has led to a weakening of the imbalance between supply and demand.
Trading picked up in early 2024 as dealers needed goods to fill supply gaps, but this benefit faded in subsequent months as producers returned to rough purchases and consumer demand remained stagnant.
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
