The Gem and Jewellery Export Promotion Council (GJEPC) has suspended a a month-long moratorium on imports and companies may now resume importing diamond rough, chairman Vasant Mehta has said.

GJEPC had made an appeal to cease all rough imports for a period of one month starting 25 November to address the diamond industry crisis in mid-November.

The ban on roughs import has been suspended amidst an expected 40 per cent fall in demand and the diamond cutters and polishers laid off workers across the country.

"We are passing through a very rough phase with employment of miners and those polishing gems at risk," Federation of Indian Chambers of Commerce and Industry (FICCI) secretary general Amit Mitra said. 

The global recession has cost the Indian gems and jewellery industry about 1,00,000 jobs, Gitanjali Group managing director Mehul Choksi told a gems and jewellery industry conference in Surat.

"This is for the first time in four decades that the diamond industry is facing a severe liquidity crunch and has laid off 1,00,000 people recently," Choksi said.

The $50 billion Indian gems and jewellery industry employs over 1.3 million people and accounts for export of around $20 billion.

India crafts 90 per cent of the world's diamonds and 70 per cent of that comes from Surat. 

Families depending on the diamond industry has been hit hard with exports nosediving and imports of rough diamonds remaining suspended for a month till yesterday.

''I thank the industry for supporting the appeal to cease the import of rough diamonds for one month," Mehta said in a statement. "Though the global situation has not improved – and US holiday season retail sales were greatly disappointing – we feel confident that our members now possess all the tools and the information required to exercise the needed self-discipline in their future rough diamond acquisition decisions," he added
 
In his statement released at the Gems and Jewellery Conference in Surat, Mehta further noted: "Our industry is committed to free and open markets and the fierce competition among and within manufacturing centers has caused an alarming shrinkage of margins. The sudden fall in global diamond demand, and the unprecedented volatility in prices, has enhanced the levels of commercial and financial risks facing our members. The GJEPC will take all possible steps to mitigate the risks for our members and to increase our endeavors to promote India's diamond and jewelry sector in the global markets."

The one month ''breather period'', as it has been described by the GJEPC was used ''to bring in overseas experts to brief members of the Council and bankers and to enter into dialogue with the government on specific assistance measures - while at the same avoiding an irresponsible increase in the industry's banking debts. Council members utilised the opportunity to discuss the fall in global demand for rough and polished diamonds with their workers who will bear much of the burden that will be caused by the inevitable contraction of the diamond business for the foreseeable future'', the statement said.

The Israel diamond industry was considering a similar appeal. However, discussions at the  Israel Diamond Manufacturers Association could not reach an agreement.