Surat: A meeting of the Surat Lab Grown Diamond (LGD) Association was held on Monday to discuss measures to improve the current trade scenario and bring greater organisation to the sector to protect the interests of all stakeholders across the value chain.Industry participants said the LGD trade has struggled to stabilise prices for years, with rates continuing to fall and putting sustained pressure on manufacturers and polishers. Speakers at the meeting noted that persistent price erosion has been underway for nearly a decade, forcing many polishing units to consider shifting to other sectors as earnings and wages decline.One of the key issues raised was the practice of offering on-the-spot discounts during cash transactions. Members said the discount culture carried over from the natural diamond trade, where larger profit margins traditionally allow room for such negotiations. In the LGD segment, however, margins are significantly thinner, making cash discounts a direct hit on earnings.“The discount practice is eating out our earnings and it should stop. With unity in the industry, we can prevent it,” said Babu Vaghani, president of the Surat LGD Association.Leaders also expressed concern about skilled diamond polishing workers leaving the industry as wages fall in tandem with pricing. According to participants, as polished LGD prices drop, manufacturer profitability shrinks, leaving little choice but to further cut labour payouts, accelerating workforce attrition.“As the price of LGD drops, the profit also drops for manufacturer and this forces to cut down wages further. We need to change this situation by stabilising prices,” Vaghani added.Growers and manufacturers also discussed efforts to bring greater discipline to polishing charges and pricing structures so manufacturers are not forced to compromise on wage payments and production viability. A manufacturer said the trade is working to address situations where increases in rough prices are not reflected in polished LGD pricing.“When rough price increased, the polished LGD price do not change in LGD. We are working to change this practice so that earning of rough trader, manufacturer and polished traders is protected,” a manufacturer said.
