Trying to cope with the crisis of liquidity in the diamond industry, the Indian diamond cutting and polishing center in Surat decided to reduce the production of polished diamonds to 50% of full capacity and maintain these figures throughout the fourth quarter.
According to the Indian Council for the Promotion of Gems and Jewelery Export Promotion (GJEPC), diamond producers cut production by almost 50% due to insufficient profitability, which is due to continued high prices for rough diamonds, the volatility of the rupee exchange rate and the decline in demand for diamonds.
Reducing the production of diamonds can lead to an increase in the price of diamonds, as well as to force world diamond producers to reduce prices for rough diamonds.