The Gem & Jewellery Export Promotion Council (GJEPC) of India released the annual export performance report for FY2016 in the presence of Chairman Praveenshankar Pandya, Vice Chairman Russell Mehta and other Directors. The data indicated that Exports of gold jewellery in FY16 dropped 13% to USD 8,609.25 mn as compared to USD 9,903.61 mn in FY15; Exports of Colored Gemstones dropped 4.4% in FY16 to USD 433.18 mn as compared to USD 453.25 mn in FY15; Gross exports of cut and polished diamonds in FY2016 dropped 13.7% to USD 19,996.06 million as compared to USD 23,160.18 mn in FY15; and other exports (such as pearls, synthetic stones, costume and fashion jewellery, etc.) increased by 49.7% in FY16.
Speaking at the Presser, Praveenshankar Pandya, Chairman, GJEPC, said, “For the first time ever, the Export of Cut & Polished diamonds, has shown a huge decline of 13% during April- March 2015-16, in comparison to the same period last year. Weak international demand and high rough diamond prices have led to the absence of Profitability. Slow Demand has led to the fall in Rough Diamond Import by 16% in FY 2015-16 for the first time. Rough Prices are edging upwards, the sluggish global demand has created inventory pile up. Increased Financial Cost or inventory carrying cost has become unbearable. Interest Subvention is the need of the hour!”
Russell Mehta, Vice Chairman, GJEPC said, “GJEPC is preparing a ‘Job Work’ draft Policy to be shared with the Government. The facility of job work is already allowed in China. In-spite of labour being around 20% expensive than India, global diamantaires are sending their diamonds to China for manufacturing purpose as job work policy is already in place in China. It is proposed to allow Goods on consignment basis for manufacturing purpose thus creating more jobs for artisans in the country.”
Praveenshankar Pandya also urged the government to permit the sale of rough diamonds at the SNZ in Mumbai by implementing a 0.25% tax on sales turnover achieved at SNZ by foreign mining companies. He also announced that it is collaborating with leading Miners namely De Beers, ALROSA and Rio Tinto to launch a Joint Promotional ‘Generic Diamond Promotion’ Programme.