Mumbai: The Gem & Jewellery Export Promotion Council (GJEPC) has begun multiple initiatives and is interacting with various industry stakeholders in an attempt to build a global consensus on the industry response and draw up a plan of action in response to last month’s announcement of revisions to the FTC Jewelry Guides related to marketing of diamonds in the USA.
This was revealed by the GJEPC Chairman Mr. Pramod Agrawal and Vice Chairman Mr. Colin Shah while addressing the press on the concluding day of the India International Jewellery Show (IIJS) in Mumbai.
“The guidelines themselves relate to the US market and how companies there should address US consumers while marketing lab-grown diamonds. So in any case, an Indian trade body like GJEPC cannot directly send its opinion to the FTC,” Mr. Agrawal clarified in reply to a question.
“However, the Council has already been reaching out to different industry bodies and stakeholders, including holding a number of meetings on the sidelines of the IIJS, to help fashion a common global response,” GJEPC ED Mr. Sabyasachi Ray stated.
Mr. Ray pointed out that GJEPC was not opposed to synthetic or lab-grown diamonds per se. “We have always maintained that it can be developed as a separate vertical that is not confused with the natural diamond pipeline.”
He added that the Council had taken a lead in implementing this understanding. “Some years ago at IIJS we created a section exclusively for natural diamonds within the show and set up a distinct and separate section where lab-grown and treated diamonds as well as other simulants could be showcased,” he said. “And, if there are newer exhibitors who wish to exhibit within that section we can even expand it in the future subject to the constraints of space and infrastructure.”
Vice Chairman Mr. Shah said that there was also a positive aspect to the FTC ruling which should be recognised. “The FTC guides make it amply clear that lab grown diamonds cannot be marketed without clear disclosure regarding their origin. Producers will mandatorily have to use lab-grown, man-made or some other similar descriptor to clearly indicate the lab-grown nature of the stones while marketing their product. The attempts by some companies to simply sell these products as XXXX (Brand name) Diamonds will have to come to an end.”
The GJEPC officials also presented their perspectives on the proposed Domestic Council for the Indian jewellery industry and the Cluster Mapping exercise that has been undertaken while responding to queries from journalists.
Mr, Agrawal explained that “the export and domestic industries are closely intertwined”. He pointed out that “as the domestic industry modernises and upgrades, more and more players will be in a position to export”, adding that “export industry could face a hurdle” in the absence of a “strong domestic base”.
Mr. Ray added that “many leading retailers are opening international outlets, while sales to foreign tourists who pay in foreign currencies are considered to be exports. Both add to the foreign exchange earnings of the country”.
While stating that Council was “awaiting details of the Ad Hoc committee proposed to be set up by the Ministry of Commerce”, Agarwal said that the GJEPC would “accept whatever role we are asked to play and shoulder any responsibility that government may give us”.
He said it was already involved with the Cluster Mapping study being undertaken by the NCAER on behalf of the ministry, and that some of the 13 CFCs that have already been planned are located in traditional centres of the industry.
He elaborated further, saying, “There are an estimated 170-180 clusters across the country each specialising in a local style of jewellery. The mapping will reveal exactly how many such clusters there are, what are their traditional strengths, what is the history and what is the present position. This study will give a clear picture and help us in preparing a comprehensive plan and a strategic roadmap to achieve it.”
