Rate of contraction in gems and jewellery exports slows down in June

Though the June figure compares poorly YoY, it's much better than April and May

Gems and jewellery exports showed signs of revival in June after two months of bleak business during the lockdown.

Even as at $1,647.49 million, the exports in June 2020 were 34.72 per cent less than $2,523.74 million reported a year ago, this figure was much better than that in May ($570 million) and April (said to be much lower, though the data has not been released).

According to the preliminary data provided by the Gem and Jewellery Export Promotion Council (GJPEC), exports of gems and jewellery declined 54.79 per cent YoY to $ 2.75 billion during the April-June period.

Import of rough diamonds, too, declined sharply by over 82 per cent in the June quarter because of the lockdown and a voluntary ban on the import of the precious stone, helping reduce the inventory of polished diamonds.

The sector has been hit hard by the Covid-19 pandemic and lockdowns in India and several other countries. The unrest in Hong Kong, a major export destination, has worsened the scene.

Colin Shah, chairman, the GJEPC, said: “When compared with April and May, we have seen an improvement in exports following Unlock 1. However, we need to bring in reforms to boost ease of doing business in the sector, and at the same time, make the industry self-reliant.”

 

 

He said: “In our meetings with the government, officials have assured us that they would look into the issues and address our concerns through periodical reviews.”

Cut and polished exports in June were down 46.91 per cent YoY to $898.32. For the quarter, the fall was 49.68 per cent, to $1,801.71 million.

Gold jewellery exports in June were down 40.72 per cent YoY to $237.05 million; for the quarter, the decline was 79 per cent to $1,536.57 million.

The overall import of gems and jewellery between April and June this year was worth $915.14 million, 74.81 per cent less than $3,632.87 million reported in the corresponding period a year ago.

The import of rough diamonds the April-June 2020 period fell 82.70 per cent to $481.65 million, from $2,784.13 million a year ago. This has helped clear inventory with diamond polishers, but voluntary closure of diamond polishing units in Surat (until July 19) in view of rising Covid-19 cases may affect the industry in the short term.