JOIN USGems and jewellery (G&J) exports from the country fell 3.46% in FY16 to $38,599.18 million compared with $39,980.63 million in FY15. Gross exports of cut and polished diamonds during the fiscal dropped 13.66% to $19,996.06 million (provisional same ports figures and data) when compared with $23,160.18 million in FY15.
“For the first time ever, the export of cut and polished diamonds, has shown a huge decline of 13% during April- March 2015-16, in comparison to the same period last year. Weak international demand and high rough diamond prices have led to the absence of Profitability,” Gem & Jewellery Export Promotion Council (GJEPC) chairman PraveenShankar Pandya said.
Slow demand has led to the fall in rough diamond import by 16% in FY 2015-16 for the first time. Rough prices are edging upwards, the sluggish global demand has created inventory pile up. Increased financial cost or inventory carrying cost has become unbearable. Interest subvention is the need of the hour, Pandya added.
Cut and polished diamonds accounted for 52% of the gross gems and jewellery exports in FY16 while gold jewellery exports accounted for 22% of the gross G&J exports. Silver jewellery accounted for 8% of gross exports respectively.
UAE accounted for 32% (up from 29% in FY15) of the gross exports in FY16 while those to the US accounted for 22% (up from 21% in FY15) of the gross exports. Exports to Hong Kong in FY16 accounted for 28% (down from 31% in FY15) indicating the slowdown in China/ Hong Kong.