A price list published by Rapet , the online magazine for Rapaport Group , showed a 13 % decline in polished diamond prices since 2010 . Banks in Surat and Mumbai are lowering prices to reduce cash flow and sources have suggested Indian banks are tightening credit extended to diamond firms . Cutters in Surat have decreased the production of polished stones by 30 % and are turning to smaller stones . Babu Gujarati , the president of Surat Diamond Association , said the diamond market is in a decline and the polished diamond market has decreased to 25 % for diamonds between 0.03 and 1 carat .
A price list published by Rapet, the online seller for Rapaport Group, showed a 13% decline in polished diamond prices since January. Merchants in Surat and Mumbai are reducing prices to improve cash flow and sources have suggested Indian banks are tightening credit extended to diamond firms. Cutters in Surat have decreased the production of polished stones by 30% and are turning to smaller stones. Babu Gujarati, the president of Surat Diamond Association, said the diamond market is in a recession and the polished diamond market has decreased to 25% for stones between 0.03 and 1 carat.