The global sentiment for diamond purchases during the remaining year is estimated to be low and this has caused an impact on the Indian rough diamond purchases too.
India is the largest hub for diamond processing in the world. India dominates rough mined diamond processing and the country traditionally accounts for at least 70% of annual processing of rough mined diamonds. Indian market is key for diamond industry.
India’s import of cut and polished diamonds fell by 8% for the first quarter of this financial year and that of rough diamonds has also declined by 10% for the April-June 2014 period as compared to same period previous year, as per data released by Gems and Jewellery Export Promotion Council (GJEPC).
The diamond market is vulnerable to ups and downs as the demand varies cyclically. In addition, De Beers recently updated its sightholder policy, which would have an impact of buying of roughs on the open market. To prepare for the possibility of a surge in demand for the coming holiday season, Indian diamantaires already have surplus stock, whether they apply for the sightholder allocation starting January 2015 remains to be seen.