The United States (US)  top importer of low-cost small diamonds below 0.30 carats — has recorded a decline in the import of polished diamonds in August. This is a setback to Indian diamantaires.

As per the USA import-export statistics, the diamond imports fell 6.2 per cent year on year to $1.5 billion in August compared to $1.67 billion during the same month last year. In 2013, the import of polished diamonds in the USA had registered a 30 per cent increase during the month of August.

In its Diamond Insight Report 2014, the De Beers group has stated that the USA is likely to remain the world's largest market for diamonds for the next 15 years despite growing appetite for gems from China and India.

At present, the US has a market share of 40 per cent in polished diamonds followed by 10 per cent and 7 per cent by China and India respectively. The annual global polished diamond market is pegged at $25 billion. The global diamond jewellery market was estimated at $79 billion in 2013.

India's polished diamond exports to the USA stand at $6.1 billion, higher than that from Belgium and Israel and that the country dominates its contribution in the USA's import basket in the jewellery category at 23.4 per cent.

The annual sales in the USA are pegged at around $65 billion. Over 50% of the diamonds exported out of India find their way to the USA shelves. October-end is also the time when most orders are placed with Indian diamond houses for Christmas and New Year season."Though the USA is no longer the leading export destination of cut and polished diamonds manufactured in India, (the UAE has jumped ahead to first position), still there is a reason for diamantaires in Surat and Mumbai to get worried," said a DTC sightholder, adding that the industry will shut for a three week long Diwali vacation from October 20.

Aniruddha Lidbide, diamond analyst, said, "Financing is a major issue for Indian diamantaires and also for dealers and jewellers based abroad in the USA. Also, diamonds are facing a stiff competition from luxury goods like I-phone and other gadgets. This is first time that imports of polished diamonds in the USA have decreased in August."

Source:- timesofindia.indiatimes.com