SourcingSep 15, 2023
‘A Diamond Is Forever’ Is Back Again, Backed by $20M SourcingSep 27, 2023
India Calls for 2-Month Moratorium on Rough Diamond Imports
The plea comes against a backdrop of declining demand and falling prices.
Five diamond industry leaders in India have signed onto a letter calling for a two-month halt on rough diamond imports amid flagging demand for diamond jewelry and falling polished natural diamond prices. (Stock image ©De Beers Group/Photo credit: Ben Perry @ Armoury Films)
Mumbai, India—Diamond industry leaders in India are appealing to mining companies and the country’s manufacturers to stop importing rough diamonds for at least two months.
In the letter, they “suggested” manufacturers halt the import of rough diamonds from Oct. 15-Dec. 15 in response to the decline in diamond jewelry demand in the world’s two largest markets, the United States and China.
The letter also notes that Indian diamond leaders already have reached out to all the major diamond mining companies and asked them to support the industry with a “prudent and responsible approach in their offerings to their respective customer base.”
It states: “We have witnessed that mining companies are regularly selling the rough diamonds that are being mined, irrespective of the state of demand in the midstream. They believe that the midstream is a mature segment of the pipeline and will only purchase rough diamonds if there is real demand.
“In other words, they rely on the midstream to gauge the demand for rough diamonds and are happy to respond with corresponding levels of supply. This puts the onus on the midstream to transmit real levels of demand by translating our need for supply of rough diamonds to all mining companies.”
Alrosa, which remains under sanction in the U.S., agreed last week to cancel its September and October sales in response to a request from India’s Gem & Jewellery Export Promotion Council (GJEPC).
De Beers said it will continue to hold sights, focusing on “additional supply flexibility” for sightholders when needed.
The company said it will “take a responsible approach to rough diamond sales, supplying to demand and supporting both the short-term and long-term health of the industry, just as we have previously when faced with challenging industry conditions.”
Together, Alrosa and De Beers account for approximately 53 percent of the world’s production by volume and 59 percent by value.
Related stories will be right here …
In the letter, they “suggested” manufacturers halt the import of rough diamonds from Oct. 15-Dec. 15 in response to the decline in diamond jewelry demand in the world’s two largest markets, the United States and China.
The letter also notes that Indian diamond leaders already have reached out to all the major diamond mining companies and asked them to support the industry with a “prudent and responsible approach in their offerings to their respective customer base.”
It states: “We have witnessed that mining companies are regularly selling the rough diamonds that are being mined, irrespective of the state of demand in the midstream. They believe that the midstream is a mature segment of the pipeline and will only purchase rough diamonds if there is real demand.
“In other words, they rely on the midstream to gauge the demand for rough diamonds and are happy to respond with corresponding levels of supply. This puts the onus on the midstream to transmit real levels of demand by translating our need for supply of rough diamonds to all mining companies.”
Alrosa, which remains under sanction in the U.S., agreed last week to cancel its September and October sales in response to a request from India’s Gem & Jewellery Export Promotion Council (GJEPC).
De Beers said it will continue to hold sights, focusing on “additional supply flexibility” for sightholders when needed.
The company said it will “take a responsible approach to rough diamond sales, supplying to demand and supporting both the short-term and long-term health of the industry, just as we have previously when faced with challenging industry conditions.”
Together, Alrosa and De Beers account for approximately 53 percent of the world’s production by volume and 59 percent by value.
The call to temporarily halt rough diamond imports comes as the decline in demand for diamond jewelry has left Indian companies with more polished natural diamonds in a market where prices are falling.
It is the third time industry leaders in India have made such a plea. The first was in 2008 during the global financial crisis, and the second came in 2020 during the COVID-19 pandemic.
As Stephen Rego reported for National Jeweler’s September 2023 India Diamond Report, the country’s polished diamond production is well below the levels recorded last year, signaling an end to the halcyon days the industry witnessed in the immediate wake of COVID.
According to figures released by the GJEPC, in the first five months of the Indian fiscal year (April to August 2023), exports of polished diamonds have fallen 30 percent year-over-year in value terms and are down 28 percent in volume terms.
Ajesh Mehta of D. Navinchandra Exports, who is also head of GJEPC’s Diamond Panel Committee, told Rego that while manufacturers expected a drop-off in U.S. demand, the global slowdown has been deeper and wider than anticipated due in large part to stagnant demand in China.
In the letter, the industry leaders provided examples of the various initiatives under way to help stimulate natural diamond demand, including the GJEPC’s gala at the recent Hong Kong show, the new dedicated diamond section at the India International Jewellery Show, and the efforts of the Natural Diamond Council, which just unveiled its latest campaign.
De Beers also is looking to generate demand for natural diamonds this holiday season by reviving and refreshing its “Seize the Day” campaign from the 1990s.
“We have no doubt and remain confident that we will address and improve long-term demand in this precious and rare natural resource, but at the same time, we must navigate the short term carefully,” the letter states.
Editors' Picks
Sponsored by
The leaders of five key Indian diamond industry organizations signed the letter: GJEPC Chairman Vipul Shah, Bharat Diamond Bourse President Anoop Mehta, Mumbai Diamond Merchants Association President Bharat Shah, Surat Diamond Bourse Chairman Vallabhbhai Patel, and Surat Diamond Association President Jagdish Khunt.
The letter calls for revisiting the proposed ban on rough imports on Dec. 1 to gauge if the supply/demand situation has improved.
It also noted that Indian diamond manufacturers should continue their operations without interruption despite the ban on rough imports, and that measures should be taken to ensure the moratorium doesn’t impact the livelihoods of the country’s many diamond factory workers.
“Having taken these steps, we have no doubt that we will come through these challenging times stronger than ever, as we all believe in the longer term consumer demand and value of this finite natural gift of love—diamonds.
“Let us act together in the collective interest of the Indian diamond industry so that we can confidently walk towards a better season ahead,” the letter concludes.
The letter calls for revisiting the proposed ban on rough imports on Dec. 1 to gauge if the supply/demand situation has improved.
It also noted that Indian diamond manufacturers should continue their operations without interruption despite the ban on rough imports, and that measures should be taken to ensure the moratorium doesn’t impact the livelihoods of the country’s many diamond factory workers.
“Having taken these steps, we have no doubt that we will come through these challenging times stronger than ever, as we all believe in the longer term consumer demand and value of this finite natural gift of love—diamonds.
“Let us act together in the collective interest of the Indian diamond industry so that we can confidently walk towards a better season ahead,” the letter concludes.
More on Sourcing
The Latest
Events & AwardsJan 30, 2025
Registration Open for Converge 2025The inaugural event is being co-hosted by the American Gem Society and the Gemological Institute of America.
CollectionsJan 30, 2025
Pharrell Williams Brings Tahitian Pearls to His New Tiffany & Co. CollectionFive new designs were added, all donning Tahitian cultured pearls and spear-like trident motifs, along with the new “Titan” setting.
CollectionsJan 29, 2025
Boucheron’s High Jewelry Takes the Form of ‘Untamed Nature’The jeweler’s latest high jewelry collection looks into the Boucheron archives to create a “living encyclopedia of high jewelry.”
Brought to you by
3 New Year’s Resolutions for Jewelry Lovers The new year feels like a clean slate, inspiring reflection, hope, and the motivation to become better versions of ourselves.
FinancialsJan 29, 2025
LVMH Watch, Jewelry Sales End the Year DownWatch and jewelry sales slipped 3 percent in 2024, though the luxury conglomerate did see business pick up in the fourth quarter.
Weekly QuizJan 23, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsJan 29, 2025
Chanel Names New General Manager of Watches, Fine Jewelry for USOlivier Kessler-Gay will take over the role on March 3.
SurveysJan 29, 2025
Consumer Confidence Slips for Second Consecutive Month It hit a four-month low in January due to concerns about the job market, though consumers remain bullish about the stock market.
Brought to you by
A Diamond Is Forever Celebrates "Forever Present" Holiday CampaignA Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’
Events & AwardsJan 29, 2025
Chris Ploof To Teach Mokume Gane at AJSThe jewelry designer and master metalsmith will present on the ancient Japanese metalworking technique at the Atlanta Jewelry Show in March.
CollectionsJan 28, 2025
Bliss Lau Celebrates the Intricate Mosaic of Identity in New CollectionThe versatile “As We Are” collection features 14 pieces with interlocking designs allowing for 27 different looks worn around the body.
Events & AwardsJan 28, 2025
NouvelleBox Show Returns to New York CityThe showcase, in its second year, will feature more than 20 international brands at its curated event from Feb. 2-4.
Recorded WebinarsJan 28, 2025
Watch: Fine Jewelry Market Predictions for 2025 “My Next Question” guests Sherry Smith and Edahn Golan share their 2025 forecasts, from sales and marketing to what retailers should stock.
Events & AwardsJan 28, 2025
Here Is the 2025 AGTA GemFair Tucson Educational LineupThe seminar series covers topics from market trends and colored stone terminology to working with museums and growing an Instagram profile.
MajorsJan 27, 2025
Le Vian Corp. Chairman Larry LeVian, a Man of Faith and Family, Dies at 73 LeVian is remembered for his leadership in the jewelry industry and for being a selfless and compassionate person.
CrimeJan 27, 2025
New Jersey Jeweler Sentenced to 2 1/2 Years for Evading CustomsMonishkumar Kirankumar Doshi Shah pleaded guilty to evading customs on more than $13.5 million of jewelry imported into the U.S.
SourcingJan 27, 2025
Dev Shetty To Head New Auction House for Rare Colored GemsJemora Gemhouse’s inaugural auction, slated for March, will take place in Dubai and feature polished sapphires.
CollectionsJan 27, 2025
Rachel Quinn Embodies Feelings of Falling in Love in New CollectionQuinn partnered with Gemfields to create “Crazy Love,” which features Zambian emeralds and Mozambican rubies across 10 pieces.
MajorsJan 27, 2025
Arch Crown’s 2025 ‘Tag & Label’ Catalog Is Out Now The catalog is 48 pages and features more than 100 styles.
CollectionsJan 24, 2025
Piece of the Week: Ashley Zhang Jewelry’s Lunar New Year NecklaceThe one-of-a-kind necklace was designed in celebration of the Chinese New Year, as 2025 is the Year of the Snake.
SourcingJan 24, 2025
Ethical Gem Fair Heads Back to Tucson The gemstone show is slated to take place at the Scottish Rite Cathedral.
Policies & IssuesJan 24, 2025
These Designers and Retailers Are Raising Money for LA Wildfire Relief From raffles to auctions to donations, the industry is working to aid charities in Los Angeles amid the raging wildfires.
CrimeJan 23, 2025
4 Men Arrested After Allegedly Plotting to Kidnap JewelerThe suspects are accused of planning to kidnap a Miami jeweler and rob him of his cryptocurrency.
CrimeJan 23, 2025
Security Guard Killed in Armed Robbery at Namibian Diamond Co. Francis “Gosh” Eiseb, 58, was a senior protection officer for Namib Desert Diamonds, also known as Namdia, in Windhoek, Namibia.
SourcingJan 23, 2025
RapNet, AGTA Partner to Launch Gemstone Trading NetworkThe online diamond and jewelry marketplace has expanded, introducing a new platform dedicated to colored gemstone trading.
Events & AwardsJan 23, 2025
Plumb Club Announces Speaker Lineup for Symposium ‘25The second annual learning forum for retailers is slated for March 13 at City Winery in Pier 57 in New York City.
SourcingJan 23, 2025
Fancy Color Research Foundation Names New CEORoy Safit took over the role on Jan. 1.
ColumnistsJan 22, 2025
On Data: How Did Independent Jewelers Fare in 2024? Sherry Smith shares data on the year gone by, including the breakdown between natural and lab-grown diamond sales.
