Surat: Polished gems prices shine amid Covid gloom

SURAT: Good news for the beleaguered Surat diamond industry. For the first time in the last five years, despite pandemic restrictions, polished diamond prices have shown a rise between 2% and 20% in various sizes ranging from 30 cents to 1 carat in the last one year.
If the industry leaders are to be believed then the diamantaires have successfully brought down polished diamond inventory levels of pre-Covid times by exercising voluntary embargo on the import of rough diamonds for two months starting from June 2020.

The latest figures provided by the Gems and Jewellery Export Promotion Council (GJEPC) suggest that the polished diamond export in September 2020 decreased 17% to Rs 11,495 crore.
As per industry estimates, the diamond industry was sitting on inventory levels of Rs 25,000 crore during the lockdown. When the units reopened in the post-lockdown period from June, the industry had exported Rs 20,000 crore worth of polished diamonds between April and June 2020.
Aniruddha Lidbide, a diamond industry analyst told TOI, “Surat diamantaires voluntarily banned the import of rough diamonds for two months to clear their inventories. About 70% of units have reopened post-lockdown while manufacturing capacity is below 60%. Against increasing demand, traders are unable to supply due to shortage of goods in the market. Prices of polished diamond have increased in the last one month due to festive season in India and the US.”
President of Surat Diamond Association (SDA), Nanu Vekariya told TOI, “Polished diamond prices have increased after a long gap of more than five years. It is a win-win situation for traders and the diamond unit owners in the international market. However, the supply of rough diamonds has been greatly affected by the ban on international flights in the country.”
Vekariya added that rough diamond prices in the local market too have increased by about 15% owing to short supply by mining companies abroad.
Surat’s jewellery industry is afraid that high diamond prices will push away potential customers this Diwali season.
Director of all-India Gems and Jewellery Domestic Council (GJF), Nainesh Pachchigar told TOI, “Gold prices are very high, and rise in diamond prices will only make things worst for the end consumers.