With an eye on festive season in November-December, diamantaires from Gujarat have set high hopes from the upcoming Jewellery and Gems Fair to be held in Hong Kong next week. While exports to US have turned weak, diamantaires look at East Asian nations as a promising markets.
According to industry insiders, demand for small diamonds - a speciality of Surat's diamond polishing industry is likely to be robust Japan, Hong Kong and Singapore are some of the major markets for small diamonds. Over 50 per cent of the total diamond pieces polished in Surat are small pieces.
"Demand from US and European markets have remained weak, but there is high demand prospects from Japanese and East Asian markets, where small diamonds are high in demand. This can be a major boost for the industry after a spell of lull period," said Pravin Nanavati, a diamond player and an industry expert based in Surat.
Eastern markets have been buying specifically small variety of diamonds from India in the varied application including usage in watches and accessories besides the jewellery.
US is a major market for big diamonds, while gulf countries have high demand for light weight diamonds.
Estimates suggest, of the total exports of small diamonds from India, over 30 per cent goes to the Eastern markets. Surat being a hub for diamond polishing, diamond players in the city look at the increased prospects from the Hong Kong Jewellery and Gem Fair, to be held during September 19 to September 23.
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"The mood is upbeat and demand will come from consumers. Overall, there will be 5-7 per cent growth in diamond sales this season against last year," said Agam Sanghvi, director, Sanghvi Exports - a Surat-based leading diamond exporter. Sanghvi also has operations in Hong Kong.
It may be noted that polished diamond imports by US has dropped by 15 per cent year-on-year to US $ 1.747 billion for the month of July.
"Festive season is closing in and we expect at least 30 per cent rise in sales this year as against last year. Japan will be our major destination for diamond exports. Prices have improved and demand seems to be opening up for Christmas," said a diamond exporter from Surat.
As per the data provided by Gems and Jewellery Export Promotion Council (GJEPC), India's gems and jewellery exports declined by about 12 per cent year-on-year to US $ 2.8 billion for the month of July from US $ 3.3 billion in corresponding period last fiscal. For the April to July period, the country’s overall gems and jewellery exports dropped about 9.5 per cent to $12.9 billion compared to $14.33 billion in the same period last year.
During April—July this year, the country’s overall gems and jewellery exports dropped about 9.5 per cent to $12.9 billion compared to $14.33 billion in the same period last year.