Date:28/12/2008 URL: http://www.thehindu.com/2008/12/28/stories/2008122855931200.htm

Business

Appeal to cease rough diamond imports withdrawn

Special Correspondent

‘The industry is committed to free and open markets’

‘The council will prepare the sector for renewed growth when conditions stabilise.’

NEW DELHI: The Gem & Jewellery Export Promotion Council (GJEPC) has withdrawn its appeal made last month to cease import of rough diamonds. The appeal was made at the peak of the global banking crisis to enable Indian diamond merchants and their bankers to obtain the necessary clarifications from industry stakeholders, industry financing institutions, rough producers, government and banking authorities and overseas clients.

Council Chairman Vasant Mehta said the month-long “breather” was used by the organisation to bring in overseas experts to brief its members and bankers and to enter into dialogue with the government on specific assistance measures, while at the same time avoiding increase in the industry’s banking debts.

“Council members utilised the opportunity to discuss the fall in global demand for rough and polished diamonds with their workers who will bear much of the burden that will be caused by the inevitable contraction of the diamond business for the foreseeable future. The GJEPC will prepare the diamond and jewellery sectors for renewed growth when the global conditions stabilise,” he added. “Though the global situation has not improved and retail sales have been disappointing in the current festive season in the West, we feel confident that our members now possess all the tools and the information required to exercise the needed self-discipline in their future rough diamond acquisition decisions. We will continue to monitor the global situation very closely and not hesitate to announce new measures if and when the situation warrants this,” Mr. Mehta said.

The Chairman further noted that the gem and jewellery industry was committed to free and open markets and the fierce competition among and within manufacturing centres has caused an alarming shrinkage of margins.

The sudden fall in global diamond demand and the unprecedented volatility in prices, has enhanced the levels of commercial and financial risks facing their members, he added.