India's Diamond Industry Faces Third Ban on Rough Imports
June 30, 20
(IDEX Online) - India's diamond industry is being urged to accept upon itself a third voluntary ban on rough imports.
An appeal has been issued to halt all purchases between 10 and 31 July. It follows similar appeals on 23 April and 19 May.
An estimated $7bn of rough and polished diamonds have been stuck in India, the world's cutting and polishing capital, since the country first went into lockdown on 25 March.
Rules are now being eased, allowing a limited return to work, albeit with strict social distancing.
But the country's Gem and Jewellery Export Promotion Council, along with four other industry bodies, believes the moratorium will "help preserve inventory values and protect the industry".
It is recommending that imports be allowed between 1 and 9 July and that its members then agree to a voluntary ban for the rest of the month.
It also says it will be writing to large diamond miners urging continued flexibility and restraint at their Sights and sales.
"We express our sincere gratitude to the Indian industry for their support by exercising self-discipline and voluntarily ceasing the import of rough diamonds in India," it says in a letter to members.
"This has helped to reduce our inventory and managing cash flow at a time when businesses across the world are going through disruptions."