Indian processors suspend rough diamond import for the whole of June.
After nearly two months of the Covid-19-induced lockdown, Indian diamond processors are preparing for one month of a voluntary moratorium on the import of rough diamonds from June 1. Many diamond processors are expecting the moratorium to mount pressure on mining companies to reduce the price.
The apex industry body, Gem and Jewellery Export Promotion Council (GJEPC), has called for the voluntary moratorium to help Indian processors ease their inventory. With demand for diamonds expected to decline in the monsoon season, the moratorium will offer time to processing units to restore their business activities for a demand revival during Dussehra and Diwali.
Exports, too, have been hit because of the lockdown, even as shipments have been sent to Hong Kong this month.
Rough diamonds imported in January and February are still lying with processing units. They are sitting on huge inventory. Diamond processing factories, wholesale, and retail stores were shut for most parts of this ongoing lockdown.