Surat: For the first time in a decade, the export of polished diamond is likely to decrease by 20% FY16. The steep fall in polished diamond exports is attributed to weak demand in the US, Europe and the economic instability in neighbouring China.
As per the data available from Gems and Jewellery Export Promotion Council (GJEPC), the Indian diamond industry closed the year 2014-15 with polished diamond exports decreasing by 5% at $24 billion.
Industry experts said that the Indian diamond industry is facing similar challenging times as it did during the global economic downturn in 2008. The only difference was that the diamond mining companies had reduced rough diamond prices in 2008 by almost 50%, while the prices remained firm 2015-16. "The cheap raw material in 2008 was like a gold mine for the diamantaires. A huge amount of rough stocks were purchased during this period. However, when the global markets recovered after few months, diamantaires were ready to supply the stock with huge profit margin. This time in 2015, it is totally a reverse situation where profitability has eroded," said chairman of Gems and Jewellery Export Promotion Council (GJEPC), Praveen Shanker Pandya
Source :.timesofindia.indiatimes.com
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