Over 50% hike in diamond prices puts jewellers in a fix

Surat: Manufacturers of diamond jewellery are facing a tough time owing to a steady hike in diamond prices daily. Industry experts claim that the prices have soared over 50 percent in the past month. Manufacturers complain that there has been a five percent rise in prices every week.

“A commercial range quality diamond that I bought for Rs 8,000 earlier, is now available at Rs 14,000. While the premium quality diamond that previously cost me Rs 42,000 is now available over Rs 60,000,” Vijay Mangukiya, a diamond jewellery manufacturer and exporter told TOI.

Over 50 to 75 percent price rise has been witnessed in rough and cut polished diamonds. The exact hike depends upon the quality and category of the stone, experts said.

“I had to submit revised prices five times to the US jewellery distributor who placed an order. They accepted the revision in prices four times and then they put the order on hold when we submitted the fifth price revision recently,” Mangukiya said.

Export of studded gold jewellery from April to December 2021 was $4,084 million. According to the GJEPC data, this was 46 percent higher than the previous year.

However, after December, the rising diamond prices are putting the jewellery manufacturer and jewellers in a fix.

“I had to bring down production by almost 40 percent in my unit after December with the rise in diamond prices and also a shortage in supply. I would prefer to take new orders and manufacture jewellery only after the prices stabilize,” said Ramesh Kakadiya, a diamond jewellery manufacturer and exporter.

“The diamond jewellery manufacturing industry is in a wait and watch mood. There is international demand but new orders are either being put on hold or accepted on condition with the addition of rising diamond cost,” said Jayanti Savaliya, president, Surat Jewellery Manufacturer Association.

Confirming that the prices of diamonds have gone up over 50 percent, GJEPC regional chairman Dinesh Navadiya said, “There is demand for both jewellery and diamonds, but supply is limited. Hence, prices are rising. Small diamond jewellery manufacturers are facing challenges due to rising prices while the bigger manufacturers who have stock may not face the same issues.”

Courtesy: Times of India