India’s voluntary two-month ban on rough purchases saw a dramatic reduction in imports during November, down 69 per cent from $1.02bn in October to $314m, according to new figures from the GJEPC (Gem and Jewellery Export Promotion Council).
The moratorium ended on 15 December and is seen as a major reason for the recent uptick in diamond prices.
IDEX’s Polished Price Index, the best indicator of the state of the market, rose in November for the first time in 18 months.
The GJEPC called on its 9,500 members to halt rough purchases in order to “better manage the balance between demand and supply”.
The council had been prepared to extend the ban beyond two months, but decided it was not necessary.
Sabyasachi Ray, executive director of the GJEPC, said the moratorium had been a call for prudence.
Speaking shortly after it was introduced, he said: “There are enough stocks for manufacture for the next two months, based on the supply demand scenario.
“Not only that, but traditionally the Indian manufacturing sector goes on a holiday for one month during Diwali (12 November). It would automatically have closed then, so that’s nothing new.”
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