(IDEX Online) - Indian diamond producers are being urged to adopt a voluntary month-long ban on the import of rough diamonds from 15 May.
Trade bodies make the plea in an open letter and say it will help the industry survive the coronavirus crisis and send a clear message to banks that it is not prepared to face further debt.
An estimated $7bn of rough and polished diamonds have been stuck in India, the world's production capital, since the country went into lockdown on 25 March.
Five trade bodies representing India's diamond industry have jointly written a letter urging their members to cease importation for at least a month. Copies have also been sent to the Indian government calling for "urgent measures".
The letter is signed by heads of India's Gem & Jewellery Export Promotion Council (GJEPC), Bharat Diamond Bourse, Mumbai Diamond Merchants' Association, Surat Diamond Bourse and Surat Diamond Association.
"Import stoppage will help the industry face the challenge that has arisen out of turmoil in the global gems and jewellery market," says their letter.
"This move will basically cause fewer roughs to enter the diamond pipeline and the producer companies will thus face lesser strain and indirectly share in the financing burden and contribute to a faster restoration of normalcy in an otherwise healthy business."
Full text of the letter below:
Dear All,
Sub: Appeal to voluntarily cease import of Rough Diamonds for one month from May 15, 2020
As you are aware, the Covid-19 pandemic situation is having an unprecedented impact on the global economy. Various countries across the world have declared lockdowns, and, by and large these countries...