Revenge consumption: Surat diamond units working overtime to meet US demand
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Synopsis
The exporters said that demand for the Chinese New Year is expected to come in shortly. The Chinese New Year in 2021 falls on February 12. This year, the diamond sales were affected during the New Year in China due to the outbreak of coronavirus.
Agencies
There are 5,000 diamond cutting and polishing units in Surat.
Revenge consumption of diamonds from the US is driving manufacturing units in Surat to work overtime to meet the demand. There has been a shortage of rough diamonds as the diamond mines had remained closed due to the pandemic and the stocks at Surat had depleted after the units reopened but the situation has reversed. Now the diamond exporters have to run the units beyond normal schedule to meet the rising demand which has come from the US.
The Gem & Jewellery Export Promotion Council (GJEPC) has urged the Finance Minister to reduce import duties on diamonds and precious metals in the forthcoming Budget 2022 to be presented early next year.
The apex body of India’s gem and jewellery export industry said this was a key area that would help in strengthening the ongoing revival of exports from the sector.
In November, the industry showed strong signs of recovery after the negative impact of the pandemic-induced global lockdown in early to mid-2020. Official figures indicate that gem and jewellery exports reached US$ 2.48 billion during the month, just 4% below the USS$ 2.58 billion exported in November 2019.