Diamantaires told to curtail import of roughs to reduce inventory

Surat: The diamond trade bodies including Gems and Jewellery Export Promotion Council (GJEPC) have jointly appealed the diamantaires to voluntarily curtail import of rough diamonds to reduce inventory of polished ones and manage cash flow. The firms have been asked to curtail imports from July 10 till July 31.
Meanwhile, in order to continue operations and sustain the diamond workers’ livelihoods, the bodies have recommended a window of nine days – from July 1-9 — for the import of rough diamonds.
Annual rough diamond import is pegged at $15 billion. However, in 2019-20, the rough diamond import decreased by almost 15% at $12 billion.
Earlier, similar appeal was made to curtail the rough diamond imports between April 23 to May 19 by the trade bodies. However, only Rs 200 crore worth of rough diamonds were imported and that too majority being part of the old orders placed before lockdown.
In a statement, the trade bodies said that the manufacturing operations in Surat have been affected due to rise in Covid-19 cases among the workers. “In the coming times, the manufacturing operations will face several constraints because of issues like social distancing etc. The livelihood of workers is paramount and the industry is taking all possible steps to protect and support the workers,” it added.
A De Beers sightholder asking anonymity said, “We have exhausted our rough diamonds stock and need to purchase new stock to keep the unit operational. Though the units have been shut till July 14, we will have to purchase the stock now for providing livelihood to our workers after July 14.”