Wedding demand will drive diamond consumption in the country in the quarter to December and consumption is likely to reach 70% of the pre-Covid time, according to De Beers, the market leader in diamond trade. Russian mining firm Alrosa also echoed the same view De Beers also said it has executed 80% of its orders with Indian manufacturing units in Surat and retailers across the country to cater to the domestic market.
Simultaneously, De Beers and Alrosa have decided to provide flexibility to Indian diamantaires in purchase of diamonds in the August trading session so that the inventory at the manufacturing end does not go up. Alrosa has provided zero buyout requirement for its buyers for the August trading session, giving respite to Indian manufacturers who have already reduced imports of rough diamonds since the outbreak of coronavirus.
“The Indian market will witness a rebound in diamond consumption in November and December as many weddings have been pushed back this year due to the outbreak of the pandemic,” De Beers India managing director Sachin Jain told ET. “Since there is still uncertainty over how long travel restrictions will continue, families are cutting down on honeymoon packages and focusing on jewellery. Also, Diwali this year is in the month of November. So we are expecting good sales for our Forevermark diamonds in November and December.”
Courtesy - The Economic Times