Suspension of Rough Diamond Imports into India Withdrawn

The Gem & Jewellery Export Promotion Council (GJEPC) has withdrawn its appeal to suspend imports of rough diamonds into India. The appeal was made in mid-November, early in the rough diamond price crisis and took affect for one month starting November 25.

“I thank to the industry for supporting the appeal to cease the import of rough diamonds for one month," GJEPC Chairman Vasant Mehta said in a written statement Friday. "Though the global situation has not improved – and U.S. Holiday Season retail sales were greatly disappointing – we feel confident that our members now possess all the tools and the information required to exercise the needed self-discipline in their future rough diamond acquisition decisions."

Mehta further noted that, "Our industry is committed to free and open markets and the fierce competition among and within manufacturing centers has caused an alarming shrinkage of margins. The sudden fall in global diamond demand, and the unprecedented volatility in prices, has enhanced the levels of commercial and financial risks facing our members. The GJEPC will take all possible steps to mitigate the risks for our members and to increase our endeavors to promote India's diamond and jewelry sector in the global markets."

The one month “breather period”, as it has been described by the GJEPC was used “to bring in overseas experts to brief members of the Council and bankers and to enter into dialogue with the government on specific assistance measures - while at the same avoiding an irresponsible increase in the industry's banking debts. Council members utilized the opportunity to discuss the fall in global demand for rough and polished diamonds with their workers who will bear much of the burden that will be caused by the inevitable contraction of the diamond business for the foreseeable future”, a statement issued today said.

The GJEPC has said that it will continue to keep track of the global situation and would announce new measures required to deal with it, if and when it found it necessary.

A call in Israel to follow India's lead and widen the suspension was not approved. Discussions were held at the Israel Diamond Manufacturers Association to halt rough diamond imports, however members could not arrive at an agreement.