Diamond World (DW) May - June 2020

SPECIAL REPORT
Need to be more disciplined and
united in these trying times
The ban isn’t mandatory – at the same
time, it has been supported by members
of the diamond fraternity in unison.
Because of the lockdown, business did
not take place for the past few months
and demand-supply equation is still
adjusting itself, which will determine
diamond pricing. “It is difficult to gauge
prices at this time, at B2B level, market
pressures may force some traders to sell
off their excess stock, which may have an
impact on prices,” informs Vipul Shah.
Important to safeguard value of
one’s assets
Every stakeholder has to safeguard the
value of his assets – the diamond supplychain
will get affected, if the industry
doesn’t adhere to this ban. At present, in
the USA and Hong Kong, there has been
some demand for diamonds. Yet, there is
no significant increase in demand from
any market in the world.
Wait and watch continues…
Currently, the condition is indeed
unpredictable and one needs to wait and
watch. “As a council – GJEPC is in talks
with the finance ministry to support our
MSME sector. We are trying to work out a
package for the benefit of this sector. We
are in talks with nationalized banks. We
hope to bring about a good plan for the
benefit of diamond merchants and traders
from the MSME sector,” explained Shah.
Diamond trade may revive in
festive season
The apex industry body, Gem and
Jewellery Export Promotion Council
(GJEPC), has called for extension of
this the voluntary moratorium to help
Indian diamond processors ease their
inventory. With demand for diamonds
expected to decline in the monsoon, the
moratorium will offer time to processing
FACT ChECk
India’s gross import of
rough diamonds had
declined by 13.43 per cent
to $12.39 billion between
April 2019 and February
2020 from a year earlier
This move is a
voluntary one, meant to
safeguard the business
interest of the diamond
manufacturers and
retailers in turn. It will
help them cut down
on import cost. Owing
to the lockdown, most
diamond traders have
a good inventory. They
don’t need more roughs
at the moment
Vipul Shah, Vice
Chairman, GJEPC
units to restore their business activities
for a demand revival during Dussehra
and Diwali.
Exports need to improve
Exports, too, are on a steady decline
because of the lockdown, even as some
shipments have been sent to Hong Kong
last month.
Rough diamonds imported in January
and February are still lying with
processing units. Diamond processing
factories, wholesale, and retail stores
were shut for most parts of this ongoing
lockdown.
DiamonD WorlD | may-june 2020 | 83