De Beers allows struggling Indian diamond houses to return more rough stones
Diamond business De Beers has allowed a number of Indian diamond houses to return stones purchased from the business at “sight” and has reduced rough diamond prices as India’s diamond industry faces a slowdown.
De Beers allowed “sightholders” at its recent “sight” diamond sale in Botswana to return around 20% of stones in the mixed box they are given as part of the sale. Over 30 Indian businesses attended the sale, ET Bureau reported.
Along with allowing significantly more returns at the sale, De Beers also reduced rough diamond prices by 5% on average, a sightholder told ET Bureau.
India’s diamond industry has faced a slowdown this year and unemployment in the diamond cutting hub Surat has skyrocketed causing concerns for workers and businesses alike. The Gem and Jewellery Export Promotion Council even held a workshop on suicide prevention in Surat at the end of September due to an increase in suicide rates in the sector.
De Beers, however, maintained that the decision to allow for more flexibility at its recent “sight” sale in Botswana was due to “high levels of wholesale diamond inventories and tightness in midstream liquidity,” an official from the company told ET Bureau.
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