gems and jewellery exports shrank in June

Gems and Jewellery exports shrank by 34.72 per cent to $1,647.49 million this June, from $2,523.74 million in the same month in the previous year. According to preliminary data by the Gems and Jewellery Export Promotion Council (GJEPC), overall gross exports were lower by 54.79 per cent to $2.75 billion during the April-June period.

However rough diamonds imports drop by as sharp 82 per cent in the June quarter. This will be helping reduce polished diamonds inventories for exports.

The jewellery sector has been worst hit due to COVID 19 pandemic and the consequent lockdown in India and globally. Unrest in Hong Kong has also worsened the situation.

Cut and polished diamonds and gold jewellery were major contributors to the export list in June. Cut and polished diamond exports in June were lower by 46.91 per cent to $898.32 million in June, while for June quarter, the decline was 49.68 per cent to $1,801.71 million. Gold jewellery exports in June were down 40.72 per cent to $237.05 million and by 79 per cent to $1,536.57 million for the whole quarter.

Overall gross imports of Gems and Jewellery between April and June declined 74.81 per cent to $915.14 million from $3,632.87 million in the same quarter of 2019. Overall gross rough diamond imports in the April-June period this year were down 82.70 per cent to $481.65 million from $2,784.13 million a year ago. This has helped clear previous inventories with processors. There was a self-imposed ban on rough diamond imports during June in India which also helped pare inventories.

Gems and Jewellery sectors face a sharp decline during June. this drop in the export is viewed as the effects of  the pandemic and global lockdown. The voluntary lockdown by Surat diamond processors following a sudden spurt in Covid-19 cases and workers going back to native will impact processing in July.