The Gems and Jewellery Export Promotion Council (GJEPC) has created a committee to propose steps for the country's diamond industry due to the difficulty created by the decline of the rupee against the US dollar in recent months.
The currency has dropped by more than 15 percent against the dollar since May. It is trading at around 63 to the dollar, having previously fallen to around 69 to the American dollar.
The GJEPC called a meeting last week in Mumbai of major industry stakeholders, including Diamond Trading Company (DTC) sightholders from Surat and Mumbai, to discuss the fallout of the rupee's decline.
The diamantaires proposed that the Indian trade should collectively stop buying rough diamonds from mining companies due to the weak rupee and the sharp increases in the price of rough diamonds, according to The Times of India.
Liquidity problems have forced some Indian manufacturers to turn down rough goods due to the high prices. DTC sightholders reportedly turned down up to a quarter of the approximately $600 million worth of rough goods offered at the DTC August sight.
