The situation is very worrisome. It is not just the fact that the price is high, but the availability is also very low. We are facing major issues in finishing and fulfilling bridal orders. We are not able to pass on the increase in price to the consumer.WorlD The increase in polished diamond prices has been monumental, something the industry hasn’t witnessed in the last decade. The increase is driven by both shortage of goods as well as robust demand. In India, the ongoing wedding season poses a unique problem – consumers may be willing to pay a premium for the diamond jewellery they desire, but they may not get their orders on time considering the acute shortage of goods, finds out Vijetha Rangabashyam.

To say that the diamond industry has been through a rollercoaster ride in the last couple of years would be an understatement. From the industry coming to a grinding halt, mass layoffs, store shutdowns, declining marriages, decrease in rough prices, the industry has rebounded in the last six months from a robust demand for diamond jewellery across the world. The Indian consumers’ appetite for diamond jewellery has catapulted. When stores started reopening after the second lockdown in June 2021, retailers had a chock-a-block schedule. Demand for diamond jewellery, especially in the range of Rs. 1,50,000-2,00,000 has been exceptionally high. No amount of cheaper alternatives will replace the desire for natural diamonds, especially to mark important, special occasions and consumers understand this. But, there have been a couple of unprecedented issues that could take the industry back to where it was – acute supply crunch and a surge in polished diamond prices.

Retailers not making Profit
In November, price per carat for HI, SI quality star and melee diamonds increased by Rs. 1,500 within a span of a week. As soon as retailers were able to adjust the pricing, the price shot up again by another 10 per cent within a couple of weeks. “The situation is very worrisome. It is not just the fact that the price is high, but the availability is also very low. We are facing major issues in finishing and fulfilling bridal orders. We are not able to pass on the increase in price to the consumer ,” says Anand Prakash of Abhushan Jewellers, Agra. Consumers have placed orders after Diwali without realizing the increment in pricing and retailers are forced to deliver goods at the same price, whereas diamond jewellery manufacturers are informing retailers that polished prices are fluctuating every 15 days. “I have not seen this kind of supply crunch in the last 25-30 years,” informs Prakash.