The Gems & Jewellery Export Promotion Council has asked its members to “cease the imports of rough diamonds for a month,” beginning Nov. 25.
“Our members have sufficient rough diamonds in stock to minimize the impact on our labor force,” said Vasant Mehta, GJEPC chairman. “our move will basically cause fewer rough to enter the diamond pipeline and the producer companies will thus indirectly share in the financing burden and contribute to a faster restoration of normalcy in an otherwise healthy business.”
The extraordinary measure is an attempt to achieve two goals, according to a GJEPC statement. First, it protects the interest of the Indian diamond industry. Second, it sends a signal to the banking system that the diamond industry will not increase its indebtedness at a time when its clients are able to meet consumer demand.
“Such import stoppage will help the industry face the challenge that has arisen out of turmoil in the global financial market,” the statement read.
Photo of rough diamonds provided by Rio Tinto Diamonds