In the wake of COVID-19 and the unprecedented impact on the global economy, the diamond trade bodies have appealed to the goverment to ban import of rough diamonds for 30 days after May 15. In a letter signed by chair persons of all committies including BDB, GJEPC, SDB, SDA and MDMA, it was stated that the members have had several meetings with the top member exporters and local members of Committee of Administration of the GJEPC to discuss the current market scenario and possible steps that can be taken by the members in consequence of the unprecedented issues arising from the pandemic, to protect the diamond industry.
Subsequent to all these meetings, the GJEPC has written to the Ministry of Commerce, Commerce Secretary, Economic Advisor and other Government officials and apprised them of the precarious state of the Indian gems and Jewellery industry and has called for urgent measures so that the industry can survive this crisis. As part of this, the trade bodies have suggested that the individual members may consider the option of curtailing their import of rough diamonds from 15th May2020 at least for the next 30 days.
The letter stated that such import stoppage will help the industry face the challenge that has arisen out of turmoil in the global gems and jewellery market, in addition to sending a signal to the banking system that the diamond industry will not increase its indebtedness at the time when its downstream colleagues continue to meet consumer demand so that the bankers feel reassured & do not reduce the credit exposure to the industry.
The letter suggested that this move will also cause fewer roughs to enter the diamond pipeline and manufacturers won't be in a pressure to produce and face financial burden, but contribute to a faster restoration of normalcy.
