Exports of lab-grown diamonds slump 28.57% YoY despite government backing

economictimes.indiatimes.com:

lab-grown diamonds have slumped 28.57% year on year in the first four months of the current fiscal despite government backing, but industry insiders expect numbers to pick up this month onward after a price correction in July. Manufacturers of lab-grown diamonds (LGD) – which are 80% cheaper than natural diamond – also claimed that export volumes have increased with the US being the largest importer.

They attributed the fall in export value to price instability after several new players entered the market. Industry insiders said several new LGD units came up since finance minister Nirmala Sitharaman in this year’s budget reduced the customs duty on seeds used in lab-grown diamonds and announced a special grant to Indian Institutes of Technology (IITs) to facilitate growth of lab-grown diamonds in the country.

“There was a correction in the pricing of LGDs and reduction in abnormal profits as more players entered the markers,” Pooja Seth Madhavan, founder and CEO of Limelight Lab-Grown Diamonds, said. “The price of LGDs has rock-bottomed and has not stabilised.” Gross export of polished lab-grown diamonds from April to July stood at $444.82 million compared to $622.73 million in the same period last year, according to figures published by Gem & Jewellery Export Promotion Council (GJEPC).

Madhavan cited a report by diamond industry analyst Edahn Golan which said that in July, 50% of the loose diamonds sold by US speciality jewellers were LGDs. “India has exported 20.10 lakh carats of LGDs in April-July of FY24, which is up by 38.4% compared to the same period of FY23,” she said.