Diamond prices may go up after import ban from October 15

Sandeep Dikshit

New Delhi, September 27

Diamond prices are set to rise as days after a Russian diamond company suspended its transaction in diamonds for the next two months in order to avoid intrusive western scrutiny into their source in Surat, the entire Indian gems and jewellery industry has also asked its members to stop the import of rough diamonds for two months starting from October 15.

“Members may be advised to halt the import of rough diamonds beginning October 15 to December 15. It was assessed that halting imports of rough diamonds will help the industry better manage the balance between demand and supply, thereby protecting the value of assets and increasing consumer confidence.

“The demand for loose polished diamonds and jewellery from large consuming economies such as the US and China have been materially affected over the last many quarters, on the back of the all-time highs of 2021 and 2022, with a visible slowdown in orders.

“As a result, exports have declined. Due to such factors, our inventories in polished diamonds have increased over the past few months and prices are softer,” according to a joint circular issued on Tuesday by the Gem and Jewellery Export Promotion Council (GJEPC), Bharat Diamond Bourse, Surat Diamond Bourse, Mumbai Diamond Merchants Association and Surat Diamond Association.

The G7 is planning certificates for diamonds sold within their jurisdictions.