Economic crisis in Sri Lanka: Gems import down by 80%
RAJ KUMAR SONI FROM JALAUN SAID THE PUKHRAJ OR YELLOW SAPPHIRE HAD BECOME COSTLIER BY ₹1500 TO ₹15,000 PER RATTI ( INDIAN UNIT OF MEASURING MASS)
KANPUR : In view of the economic crisis in Sri Lanka, the import of precious stones has nosedived by 80%, according to people in the bullion market here, which is one of the largest in the state.
While the average cost of gems has gone up by 25%, the gap between demand and supply has led to black marketing of certain precious stones.
The stones are mined in Badulla, Ratnapura and Monaragla areas of Sri Lanka, with more than 2 lakh people employed in 3000 units. But now most of the units are not functioning.
A top gem importer from Jaipur said on condition of anonymity that the cost of blue sapphire alone had risen by 62 to 70% and further escalation in price was not ruled out. He said the situation was such that electricity was not available in the Lankan mines and so mining was not being done.
The Sri Lankan gems largely come to Uttar Pradesh, including Kanpur, from Rajasthan. While Rajasthan supplies precious stones worth ₹100-125 crore in a month, Kanpur’s share remains around ₹12 crore per month.
To note, the size of the Kanpur bullion market is around ₹2000 crore, which excludes gems market, which is separate.
Vivek Jain, member of UP Sarrafa Association said the Sri Lankan gems were considered the finest and remained much in demand.
The corundum (gems of coral group) and blue sapphire (Neelam) from Sri Lanka were said to be best in the world. The demand, he said, had been such that Sri Lankan yellow and blue sapphires and ruby were booked in advance.
“Sri Lankan export of these exotic gems was close to 140 million dollars,” he said, adding that in the past four decades, that country had emerged as a key exporter of gems and minerals.
Vishnu Maheshwari, who deals in gems, said Sri Lanka exported 75 kinds of precious stones. Over the years, this export had been its economic mainstay.
But now that the economic crisis in Sri Lanka has deepened and supply from there is nearly drying up, the cost of gems in India is going up steadily. Raj Kumar Soni from Jalaun said the pukhraj or yellow sapphire had become costlier by ₹1500 to ₹15000 per ratti ( Indian unit of measuring mass). Similarly, coral, ruby and emerald (panna) too had registered rise in cost by ₹700 to ₹2000 per ratti.Soni, who also deals in old stones, said since new gems were not available, the cost of the older ones was going up further, particularly of blue sapphire.