India's GJEPC Meets to Discuss Rupee's Decline

India's Gems and Jewellery Export Promotion Council (GJEPC) has formed a committee of experts to suggest measures for the country's diamond industry due to the difficulty facing it in light of the decline of the rupee against the US dollar in recent months.

The rupee has fallen by more than 15 percent against the dollar since May. It is currently trading at around 63 to the dollar, having previously fallen to around 68 to the American currency.

The GJEPC convened a meeting last week in Mumbai of industry stakeholders, particularly of Diamond Trading Company (DTC) sightholders from Surat and Mumbai, to discuss the impact of the rupee's approximate 15 percent decline.

The diamantaires suggested that the Indian industry 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.