Surat: The export of polished natural diamonds has witnessed the steepest fall ever, dropping by 40% in Nov this year compared to the same month last year. In lab-grown diamonds (LGD), there was also a sharp fall in exports (42.37%) compared to Nov of the previous year.
Ahead of Christmas and the Chinese New Year, a growth in export was expected, but the situation is yet to improve. The growth in exports of gems and jewellery from India in Oct was a positive sign for the struggling diamond industry. However, exports dropped in Nov.
In Nov, the export of cut and polished diamonds (CPD) dropped to $666.01 million compared to $1,106.53 million in Nov 2023. In Oct, there was a growth of 11.32% compared to the same month last year. Gross exports of CPD were $1,403.59 million in Oct 2024 compared to $1,260.91 million in Oct 2023. These figures were shared by the Gem and Jewellery Export Promotion Council (GJEPC).
Exports of CPD dropped to $8,980.2 million during April-Nov 2024, declining by 18.88% compared to $11,070.49 million during April-Nov 2023.
Overall exports of gems and jewellery were $1,986.21 million in Nov 2024, with a decline of 12.94% compared to $2,281.4 million for the same month the previous year.
Industry leaders explain that there is a drop in exports because of two reasons: (1) drop in demand for natural diamonds; (2) drop in prices. The prices of rough and polished natural diamonds have dropped by over 20%. Additionally, due to the Diwali vacation that started in the last week of Oct, manufacturing was on hold, and there was a drop in supply as well.
Similarly, there is a sharp drop in exports of LGD as well. The export of polished LGD in Nov 2024 was $62.88 million, showing a decline of 42.37% from $109.10 million in Nov 2023. In Oct, like natural polished diamonds, the export of LGD was also showing a growth. The export of polished LGD in Oct 2024 totalled $138.12 million, showing a growth of 1.27% compared to $136.38 million in Oct 2023.
“There is a drop in exports since diamond prices are continuously falling. Further, there is a drop in demand in foreign countries like the US, the UK and China. However, domestic demand is high and is showing positive signals,” said Vipul Shah, chairman of GJEPC.
“Already there is a drop in the price of diamonds in the last 12 months, hence the drop in export looks wide in percentage terms. Further, there was a Diwali vacation of around 20 days, and units were closed, hence there is a drop in exports,” explained a leading diamantaire.
