‘China, Far East Covid Surge May Hit India Diamond Exports in Q4’

The surge in Covid-19 cases in China and the Far East may impact diamond exports from India in the fourth quarter of this financial year, said traders. The region accounts for about 30% of India’s diamond exports and is the second largest markets, next to the US.

Diamond exporters said that unlike with the US and Europe, online transactions with China and the East have not picked up after slowing down with the outbreak of Covid-19. “Rising Covid Cases in China and the Far East are a matter of worry. It can have some impact on exports of cut and polished diamonds in the fourth quarter.

However, the demand from the US is very strong which is expected to make up for the drop in exports to China,” Vipul Shah, vice chairman, Gem & Jewellery Exports Promotion Council (GJEPC), told ET.

Shah said the supply of rough diamonds is under pressure following the outbreak of Omicron in the mining regions of South Africa and Botswana, among other. “Demand has surpassed supply by almost two times,” he said. Cut and polished diamond exports in April-November grew 21.06% to $16236.63 million (27.68% in rupee terms to Rs120398.90 crore), compared to $13412.44 million (Rs94298.84 crore) in April-November 2019.

Meanwhile, in a major relief to the gems and Jewellery Industry the government has issued guidelines on exemptions regarding hallmarking of gold Jewellery and gold artefacts meant for international exhibitions. The government has also exempted hallmarking of any approved article meant for domestic business-to-business exhibitions and special categories of Jewellery. S-ET

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