surat diamantaires in the worlds biggest diamond cutting and polishing centre in surat have pledged to maintain diamond production at 50 lower for the fourth quarters in order to manage liquidity crisis plaguing the industry the gems and jewellery export promotion council gjepc said the manufacturers have reduced diamond production by almost 50 due to lack of profitability resulting from high rough prices volatility of rupee and a slowdown in demand industry sources said the reduction in polished diamond production by the diamond manufacturers may result in increase in the polished diamond prices and the reduction in the rough diamond prices by the global miners this will motivate the small and medium diamantiares to stay away from buying high priced rough diamonds in surat last month gjepc had organized a meeting with prominent diamantaires from surat and mumbai to discuss the prevailing situation in the industry a trade advisory committee was also formed to carry out parleys with the global diamond mining companies like alrosa and de beers over reduction in rough diamond prices the industry leaders are concerned that the reduction in manufacturing capacity below 50 could lead to employment loss in the industry and mass layoff india losing manufacturing market share and nonavailable of enough polished diamond goods during the festival season rising prices of roughs currency fluctuations and limited finance options with banks having become stringent on financing had severe impact on the diamond businesses this phenomenon has assumed critical proportions calling for austerity measures amongst the trade fraternity with a view to balance the equation between manufacturing and exports said vipul shah chairman gjepc