Kolkata: All India Gem And Jewellery Domestic Council (GJC), the national trade federation for promotion and growth of trade in gems and jewellery in the country, is not in favor of banning the import of rough natural diamonds until December 15, a top official said.
The GJC board will meet to deliberate on the issue in order to prevent a hardening of the price of the precious stone in the domestic market ahead on festive season, he said.
“Our council’s board has decided to discuss the ban and its potential adverse impact on the domestic market during the coming festive season.” GJC Vice-chairman Rajesh Bhaiyyaji Rokde said.
GJC represents the interests of over three lakh gem and jewelry businesses across the country and is contemplating writing to the government and GJEPC, which made the decision without considering their views, he said.
The Gem and Jewellery Export Promotion Council (GJEPC), the country’s umbrella group for the industry, has called on its members not to import any rough diamonds for two months from October 15 to clear the current oversupply of rough and polished
gems.
“The price of the mass-consumption variety diamonds has risen by 20 per cent last year following the COVID pandemic. The restriction on imports will potentially cause domestic diamond prices to increase by another 10 percent, which could impact consumer demand during the festive season and affect local jewellery businesses,” Rokde said.
Moreover, the prices of lower carat varieties of diamond remain high though that of diamonds of 40 cents and above have corrected, he said.
Ashok Begani of the India Bullion and Jewellers Association expects diamond price to stabilise with the two-month-long moratorium on imports.
Industry sources declining to comment officially, said that US buyers have sought assurance from Indian suppliers that their exports do not include Russian rough diamonds.