Diamonds may turn cheaper

KOLKATA: Prices of polished diamonds may become cheaper by 1-2% in April as diamantaires hint at sluggish overseas demand, which in turn, could boost domestic sales which haven't posted significant growth after demonetisation.

“Demand had picked up in global markets in the December-February period with the US taking the lead, but global orders have started tapering off. The movement will be sluggish from April and we expect prices to drop for polished diamonds," Dinesh Navadia, president, Surat Diamond Association (SDA), told ET.

Praveen Shankar Pandya, chairman, Gem & Jewellery Export Promotion Council, said, “More than 40% of global sales have taken place during Christmas and New Year, and the slowdown is expected to begin from April. But the stocks with diamantaires have come down and they will replenish them. Therefore, we do not see a drastic drop in polished prices. If at all prices fall, they will be marginal.


But the polished price has remained stable for a couple of months."

Vijay Jain, CEO, ORRA, said :“At the consumer level, the negative impact of demonetisation is fading. Demand is a bit sluggish but better than last year when the trade was closed for 42 days as trade protested against 1% excise duty. We feel there will be an uptick in domestic demand in FY18."