Indian Diamond Firms Call For Producers to Cut Prices

(IDEX Online News) –Indian diamantaires running small and medium-size firms, hit by a declining rupee against the US dollar which is making imports expensive and rising rough prices, are calling on diamond producers to reduce the price of rough goods.

Diamond manufacturers are also suffering due to static or even declining polished prices which makes expensive rough unprofitable to purchase.

Surat Diamond Association President Dinesh Navadia said, "A drastic reduction is needed in the prices of rough diamonds offered by the diamond miners,” he told The Times of India. “Small and medium players are not able to buy rough diamonds as the rupee is trading at 68 to the dollar."

Rough diamond prices have gone up by 15-20 percent in the past year while polished diamond prices have decreased by 6 percent since January 2013, according to the report.

Naresh Patel, a rough diamond dealer, told the newspaper, "There is no profitability left for the manufacturers in buying rough diamonds at exorbitantly high prices. The small manufacturers will not buy rough diamonds till the diamond miners reduce prices and the rupee eases against the dollar."

As a result, Indian firms are calling on producers, including De Beers, Alrosa, and Rio Tinto to reduce rough diamond prices.