Mumbai, India-Diamond industry leaders in India have agreed to end the voluntary suspension of rough diamond imports as prices stabilise.
The two-month ban, which came into effect on 15 October, will be lifted on 15 December.
The announcement was made by India’s Gem and Jewellery Export Promotion Council (GJEPC), which represents the Indian diamond industry along with the Bharat Diamond Bourse, Mumbai Diamond Merchants Association, Surat Diamond Bourse and Surat Diamond Association.
The moratorium was introduced in the hope of addressing the imbalance between supply and demand as demand for natural diamond jewellery in the world’s two largest markets, the United States and China, declined and polished prices fell.
Indian officials are lifting the ban because market conditions have improved.
GJPEC Chairman Vipul Shah said, “We believe that the suspension has helped bring stability to the Indian diamond industry, which had been affected by low demand. The suspension has also had a positive impact on polished diamond prices in the last two months”.
“The industry is hopeful that prices will remain stable and sustainable in the coming months as demand for natural diamonds gradually recovers in key markets such as the US, China, the Middle East and Europe.”
The GJEPC thanked industry stakeholders and associations for their cooperation and support, as well as the miners and diamond producers who “cooperated and showed confidence in the Indian industry’s decision to voluntarily suspend sales”.
Despite the improvements, the Indian associations are urging the industry to remain cautious amid ongoing economic uncertainty and geopolitical tensions.
“We will continue to work closely with diamond miners to ensure a balance between supply and demand and to implement effective marketing campaigns to increase consumer confidence and demand for natural diamonds,” said Shah.
“We are confident that with our cooperation and resilience, we will achieve a prosperous future for the Indian diamond industry.”
