Indian Diamond Plants to Close Down For Diwali

(IDEX Online News) – With the Indian diamond trade suffering from a sharp liquidity crisis, and rising rough prices compounded by the weakness of the rupee against the dollar, work will come to a temporary stop in the diamond cutting and polishing hub of Surat from Friday (November 1) when several thousand diamond manufacturing start the 20-day Diwali vacation.

While the large and medium-size diamond plants will resume operations within 20 days, many smaller plants are likely to extend their Diwali vacation to a month due to high rough diamond prices and declining demand for polished diamonds.

Industry sources told The Times of India that the success of Hong Kong International Jewellery and Gem Fair in September and strong business in China's Golden week holidays has boosted confidence among diamantaires. Demand for polished diamonds has increased from buyers in Hong Kong, India and China.

A DTC sightholder said, "There are many factors affecting the diamond trade globally. The weak rupee against the dollar and the rising rough diamond prices are main factors. Also, the polished diamond demand in the United States is going to be weak this Christmas. Many diamantaires may extend their Diwali vacation this year."