A meeting held by the manufacturers decided to hike the price of lab-grown diamonds up to 25%, in a move to stabilise the struggling industry. The decision comes as industry leaders cited challenges in sustaining operations due to falling prices and rising labor costs.

One of the key issues raised in the meeting was that the current market prices were too low to even cover the wages of skilled workers. With the cost of production rising and global demand shifting, many traders reported difficulties in maintaining profitability.

As part of the resolutions passed, manufacturers also agreed to cap trader commissions at 4%, down from the earlier 7% to 8%, in an effort to streamline trade margins and reduce the financial burden on sellers.

“Lab-grown diamonds gained global traction as a cost-effective and sustainable alternative to natural diamonds. However, as natural diamond supply stabilises, we are seeing a market leaning towards natural diamonds that is affecting our margins,” said a trader who attended the meeting.

Industry leaders believe the price hike will provide temporary relief, enabling businesses to cover labor costs and maintain quality standards. The move is also expected to restore some balance in the market as the sector navigates a new phase of transition.

The lab-grown diamond sector, which emerged as a viable alternative during the downturn of the natural diamond market, is now facing its own set of challenges.

While the natural diamond industry is slowly recovering after a two-and-a-half-year slump, lab-grown diamonds have seen declining prices in recent months, causing concern among traders and manufacturers.

Courtesy: Gujarat Samachar