Surat: India’s lab-grown diamond (LGD) industry is seeking greater discipline in pricing as prolonged discounting continues to squeeze margins for manufacturers and polishers.
The issue came up at a meeting of the Surat Lab Grown Diamond Association on September 7, where industry participants called on traders and brokers to avoid undercutting and selling below agreed market levels.
Polished LGD prices have reportedly increased by 20%–25% recently, prompting traders to moderate discounts. Discounts that were earlier around 7% are now being brought down to approximately 3%–4%, according to media reports.
Association president Babu Vaghani said tighter coordination among market participants is essential to prevent excessive discounting from eroding industry earnings. He also stressed that greater price stability is needed to protect the economics of manufacturing and polishing.
The industry's pricing challenge extends beyond manufacturers. Continued price erosion has reduced profitability for polishing units and put pressure on wages, with some businesses reportedly considering diversification into other sectors. The shortage of skilled labour has emerged as another concern.
At the meeting, stakeholders also discussed the balance between rising rough LGD costs and polished prices, along with the need to maintain sustainable trading practices ahead of the upcoming festive season.
For the Surat industry, the focus is increasingly shifting from simply driving volume through lower prices to establishing a more sustainable pricing structure across the LGD supply chain.
