Although prices of some types of rough diamonds have firmed up by 2-3%, for the first time in more than half a year, diamond traders in India are not increasing their prices of polished goods for fear that a price hike may hit sales which showed a degree of recovery in October and November mainly due to demand from the United States. Domestic traders are also worried that already cautious banks will further reduce credit lines if they see lower levels of business.
"There is firmness in some categories of rough diamonds and prices have gone up 2-3%. This has happened because inventories have come down a bit and in October and November there wassome movement," said Gems & Jewellery Export Promotion Council (GJEPC) Chairman Praveen Shankar Pandya. "The United States has been the major buyer. We have not increased polished prices as we do not want to lose the demand that has come in," he added.