Facts for Prelims (FFP)
Source: Business Line
Context: The Gem and Jewellery Export Promotion Council and other leading associations in the diamond industry have instructed their members to suspend the import of rough diamonds for two months.
- This move comes in response to a significant increase in the inventory of polished diamonds due to a sharp decline in exports.
- The aim is to balance the demand and supply in the industry, protect asset values, and boost consumer confidence.
The diamond market has been facing challenges, with demand for polished diamonds and jewellery slowing down in major consumer economies like the US and China, resulting in a 27% decrease in gem and jewellery exports in the first five months of this fiscal year
What is the Kimberley Process?
The Kimberley Process is an international certification scheme that regulates trade in rough diamonds. It aims to prevent the flow of conflict diamonds while helping to protect legitimate trade in rough diamonds.
Rough diamonds are uncut, unpolished, and unprocessed diamonds in their natural form as they are mined from the earth or extracted from other sources like alluvial deposits.
