Mumbai: The Gem and Jewellery Export Promotion Council, which has seen a 19 per cent drop in exports of polished diamonds and a 31 per cent drop in gems and jewellery, has asked for government interest subvention of three per cent on the rupee and the dollar trades, in order to maintain their exports that have been affected by weak demand from Europe, Far East and China.
Praveen Shankar Pandya, chairman, Diamond India Ltd and recently elected chairman, GJEPC said the carrying cost of inventory and interest rates has increased costs by four per cent.
Earlier diamonds were a fast selling item but now inventory carrying has increased from two to six months. Israel, their main competition has very low interest rates.
He said the industry normally imports approximately $14 billion worth of roughs and exports $20 billion worth of polished diamond stones. They now import 36 per cent less of roughs and this has led to 20 per cent unemployment and 26 per cent partial employment of diamond polishers.
India exports one billon pieces of small roughs that requires a huge labour force. One workers polished 1,000 stones a year. India has acquired leadership over 30 years and accounts for 65 per cent of the global trade in terms of value, followed 35 per cent in terms of volumes. Mr Pandya said “it is necessary to maintain the indu-stry here and for India to be an international trading centre.” The Council that recently presented their demands to be included in the coming Budget to the commerce secretary.
