Surat Diamond Cutters, Polishers Hurt by Rupee Decline

The Times of India reported that Surat’s diamond cutting and polishing industry has taken a hit as a result of the rupee’s recent fall, with the production of polished diamonds falling by half.

As quoted in the market news:

The worst-hit are the small and medium unit owners, who are finding purchase of rough stones difficult. These firms heavily depend on finances from big diamond companies, who are themselves facing a liquidity crunch.

Of the total 4,000 diamond units, 3,500 are small and medium ones with a turnover of around Rs 100 crore. Ghanshyam Gabani, a small diamantaire in Varachha, told TOI, ‘I have stopped buying rough diamonds. The traders are not giving us credit.’

Inventory is piling up in these units and owners fear that they will have to incur heavy losses in selling the polished diamonds at discounted prices.

Click here to read the full report from The Times of India.