Call for Clear Lab Grown Labels in India

The Indian government is facing calls to adopt US guidelines to distinguish lab growns from natural diamonds.
Lab grown Diamonds

The Indian government is facing calls to adopt US guidelines to distinguish lab growns from natural diamonds.

The 10,000-member GJEPC (Gems and Jewellery Export Promotion Council) says there is widespread confusion in the way diamonds are marketed and advertised.

It says India should adopt the US Federal Trade Commission (FTC) guidelines, which say there must be a “clear and conspicuous” indicating that a diamond is man-made.

They also say the term “diamond” without qualification can only be used to refer to a natural, mined diamond.

And lab growns cannot be described as “real,” “genuine,” “natural,” or “precious” without additional qualifying language.

The GJEPC has written to India’s Department of Consumer Affairs calling for strict rules to differentiate between natural and lab grown.

“The absence of standardised guidelines on diamond terminology leads to ambiguity,” it says.

“And there are no mandatory disclosure requirements to indicate whether a diamond is lab-grown or natural to the consumer.”

Source: IDEX

India’s Polished Exports Fall Again in August

Diamond polisher in a factory

India’s exports of polished diamonds fell by 23.8 per cent year-on-year in August, according to the latest figures from the GJEPC (Gem and Jewellery Export Promotion Council). 

Total foreign sales were $1.04bn, compared to $1.36bn last August. Exports in July were $908m, down 22.7 per cent.

Polished diamond exports have fallen every month this year, down 20 per cent in January, 28 per cent in February, 27 per cent in March, 17 per cent in April, 15 per cent in May and 26 per cent in June. All figures are for US dollars.

Gross exports of all gems and jewelry fell by 18.8 per cent during August – a slower rate of decline than diamonds – to $2.01bn.

Rough imports for the April to August period were down 22.6 per cent to $4.98bn.

Source: Idex

Farmer Unearths 32.8 ct Diamond in Field

An Indian farmer weeding his field unearthed a 32.80 carat gem quality diamond

An Indian farmer weeding his field unearthed a 32.80 carat gem quality diamond, one of the biggest finds of recent years.

The rough gem could fetch $120,000 to $180,000 in a forthcoming auction by the Panna Diamond Office, in the central Indian state of Madhya Pradesh.

Many thousands of residents rent small patches of land in the diamond rich district, in the hope of a big find.

In February 2022 another part time prospector dug up a 26.11 carat diamond which later sold for $193,000.

And in February 2021 laborer Rampyare Vishwakarma unearthed a 14.09 ct diamond.

In this case Swamidin Pal had spent five months a year, for the last five years, digging for diamonds.

He said proceeds from the sale would be life changing, and would allow him to buy agricultural land for his sons.

Source: Idex

Indian Banks Slash Lending by 10%

Indian Banks Slash Lending

Bank financing to India’s gem and jewelry sector has fallen at least 10% since April 1 due to stricter lending conditions, according to the trade’s export promotion body.

Credit providers tightened their rules after allegations in January that jewelry tycoon Nirav Modi had defrauded Punjab National Bank of $2 billion. Financial institutions have been requiring higher collateral levels since the scandal, the Gem & Jewellery Export Promotion Council explained Tuesday.

In addition, lenders that offer “discounting” giving companies an advance on their customers’ unpaid bills are increasingly insisting on clearing all the relevant invoices. Borrowers must gives invoices to their bank, which sends the documents on to the buyer’s bank. That means sellers only receive payment, and buyers only receive the goods, once both lenders have given their approval. That requirement is damaging traders’ relationships with their customers and restricting cash flow, the council added.

Meanwhile, banks have stopped offering discounts for the sector when charging fees for assessing borrowers before granting a loan, the GJEPC noted.

“The industry is witnessing a crisis of sorts, as the banks have curtailed lending to the traders, and demanding collateral security and extensive documentation,” said GJEPC chairman Pramod Agrawal. “We are hoping that the government will intervene and bring some relief to the ailing industry that contributes 7% to [gross domestic product].”

India’s gem and jewelry exports will also decline 10% in the fiscal year ending March 2019 as the credit situation will adversely affect the sector, the GJEPC predicted. Shipments out of India fell 9% year on year to $10.1 billion for the industry in the April-to-June period, it added.

The GJEPC took measures in May to deal with the crisis, including launching a digital know-your-customer platform, MyKYC, and publishing a policy document outlining how the jewelry and banking industries can reduce risk. Agrawal has also called on the government to offer the industry an interest-subvention scheme, in which the state helps borrowers with their interest payments.