Diamond Import Ban, GJEPC, Vipul Shah: In a strategic move, leaders within India’s diamond sector have collectively decided to conclude the voluntary pause on rough diamond imports by December 15, marking a shift in their earlier decision.
Vipul Shah, Chairman of the Gem and Jewellery Export Promotion Council (GJEPC), confirmed this positive development to Rapaport after discussions held on December 5.
The decision to end the two-month moratorium was driven by an optimistic assessment of market conditions, primarily fueled by a surge in sales in the United States leading up to the holiday season and a notable reduction in manufacturers’ inventories.
Vipul Shah emphasized that the Gem and Jewellery Export Promotion Council (GJEPC) will encourage miners and manufacturers to exercise caution in managing the influx of rough diamonds into the supply chain.
The voluntary pause, initiated in October following a plea by the GJEPC and four other Indian organizations, was aimed at reviewing and stabilizing the industry amid challenging circumstances.
Notably, the industry leaders clarified that the pause was not obligatory, allowing some companies to continue their rough diamond imports. Reflecting this, India experienced a 9% year-on-year increase in rough diamond imports to $1.02 billion in October.
While polished prices showed signs of stabilization last month, as indicated by the 0.8% rise in the RapNet Diamond Index (RAPI™) for 1-carat stones, it is essential to note that the index remained down by 20.7% for the year to date.
The decision to resume rough diamond imports aligns with the industry’s cautious optimism and readiness to adapt to evolving market dynamics.