India gems body asks members to halt diamond imports

MUMBAI (Reuters) - The Gems & Jewellery Export Promotion Council has asked its members to stop importing rough diamonds for a month from Nov 25 to help it tide over the current market conditions, it said in a statement on Friday.

The step would also send a signal to the banks the diamond industry would not increase its indebtedness despite being affected by the global financial crisis, it said.

"Our members have sufficient rough diamonds in stock to minimise the impact on our labour force. Our move will basically cause fewer rough to enter the diamond pipeline and the producer companies will indirectly share in the financial burden," Chairman Vasant Mehta was quoted in the statement.