By Melvyn Reggie Thomas/ TNN
Two long years, diamantaires in the world’s largest diamond cutting and polishing sector in Surat , Gujarat, India are upbeat on achieving their sales targets in the upcoming festival season. Reason: polished diamond demand is robust in the key consumer markets including the USA, China, Hong Kong and Japan.
This time around, most of the diamond unit owners, including small and big ones, may cut short the extended period of Diwali vacation by just 10 days in order to cater to the overseas demand in the upcoming Christmas season in December.
As per the Gems and Jewellery Export Promotion Council (GJEPC), India’s export of polished diamonds increased 12 per cent in April-August-2016 compared to the same period in previous year.
Industry analysts said the demand for polished diamonds above 30 cent is robust across key consumer markets in the world. However, the prices of small diamonds, including stars and melee, have decreased, giving a tough time to the manufacturers in Surat.
In its report, the USA-based Rapaport Group stated that the polished inventory is growing as manufacturers raise production before Indian factories close for the Diwali festival, despite tight profit margins.
Diamond analyst Aniruddha Lidbide said: “The generic diamond promotion campaign has been kick-started in India by De Beers and GJEPC. However, it remains to be seen how the campaign turns the consumers towards diamond buying this festive season. But, for the rest of the markets in the world, diamond is performing well.”
GJEPC regional chairman Dinesh Navadiya said: “The diamond industry is upbeat over the improved demand from key markets. The diamond units are working hard to meet the orders. It seems this time the Diwali vacation will be shorter.”