India's rough diamond imports dip

The facts are out and the future is bleak for Surat’s diamond industry.

According to fresh data, India’s import of rough diamonds in May 2009 climbed down by 20 per cent at Rs 2,978 crore, while in the same month last year the country had imported rough diamonds worth Rs 3,714 crore.

The import of cut & polished diamonds in the said month was worth Rs 2,234.94 crore, showing a decrease of 11 per cent over cut and polished diamond imports during May 2008 when it amounted to Rs 2,012 crores.

Import of gold bars increased and amounted to Rs 1,729 crore during the month, while in May 2008, the country had imported gold bars worth Rs 1,404 crore.

India’s diamond industry exported a $888 million worth of polished diamonds in May, a drop of 34.2% compared to the same month last year, while volume by carat was 17% lower than last year, at an average value of $314.30 per carat. One reason for the lower import levels of rough diamonds into India is the very large inventory of polished diamonds in India, at a time of low consumer demand, which has forced manufacturers to decrease capacity.

India’s diamond industry has suffered greatly from the global recession, forcing the lay-offs of hundreds of thousands of skilled diamond workers.

Source: Commodity Online
(June 17, 2009)