PNB fraud fallout: Assocham survey shows 10-15% drop in diamond demand in two months

New Delhi: The Rs 13,600 crore Punjab National Bank (PNB) fraud, involving diamond tycoon Nirav Modi, seems to have shaken the confidence of diamond jewellery buyers, especially from unorganised jewellers, over concerns about the purity of precious jewellery, resulting in a drop in business, according to a survey.

While well-known branded jewellery makers issue certificates of purity, the bulk of the trade is still with unorganised players, and is based on mutual faith between jewellers and consumers. The demand for diamond jewellery seems to have decreased by 10-15 percent within two months, the survey, according to the survey conducted by industry lobby Assocham.

Diamond jewellery. Representational Image. AFP

The survey covered 350 jewellery-makers based in Delhi-NCR, Mumbai, Ahmedabad, Chennai, Kolkata, Hyderabad, Chennai, Bengaluru, Chandigarh and Dehradun. Assocham said ialso interacted with about 500 working and non-working women in Ahmedabad, Bengaluru, Chennai, Delhi-NCR and Mumbai to gauge their shopping habits.

The survey also found that 65 percent of jewellers in the unorganised market (barring the big time corporates and big brand companies) are shifting to traditional pure play gold and silver ornaments over diamond jewellery as consumers face a crisis of confidence in the purity of the precious stone.