Diamond exports fall by 80% in April-May: GJEPC data

The extended lockdown and the global pandemic has taken sheen out of the diamond industry. The export of polished diamonds between April and May fell by 80% in majority of the diamond consuming markets around the globe including US.

According to the latest data published by the Gems and Jewellery Export Promotion Council (GJEPC), the export of polished diamonds decreased to $389 million compared to $1.8 billion during the same period in previous year.

The overall gross export of gems and jewellery declined by 84% to $572 million during April-May 2020 as compared to $3.5 billion in corresponding period last year.

A leading diamond polishing firm seeking anonymity said, “The market in China is recovering, but the fresh protests in Hong Kong has disturbed the trade. Hong Kong is the gateway to China for diamonds. We have exported the diamonds to Hong Kong, but shipping them to China is a big question.”

Industry sources said that the US, which is the largest diamond consumer market with annual sale of $45 billion worth of diamond jewellery, is still under turmoil due to the Civd-19.

India exports about $10 billion worth of polished diamonds to the US every year. About 60% of the monthly export from India is destined to the US market.

Chairman of GJEPC, Colin Shah told TOI, “The polished diamond exports has been affected due to the lockdown globally. However, the demand in China, Europe and Australia is recovering as the Covid-19 situation has improved and the markets have reopened.”

Shah added, “Industry is recovering slowly but surely with all the safety norms. It will recover faster if there is credit availability and more quicker progress made on the ease of doing business front.”

Courtesy: Times of India