Global Market Insights: Diamond Demand Rises as Sugarcane Quotas Are Adjusted

Global Market Insights: Diamond Demand Rises as Sugarcane Quotas Are Adjusted​

Indian industries are showing varied momentum, with diamond jewellery demand gaining traction while government intervention ensures domestic supply in the sugar sector. Simultaneously, agricultural commodity forecasts and AI-driven farming initiatives mark major updates across India's primary sectors.

Sugar Sector Focus: Government Curbs Cane Juice Diversion​

The Food Ministry has released the August sugar sales quota, allocating 22.5 lakh tonnes for the month, maintaining the level of the previous year. This move is seen as an effort to check any further price increases in the market.

However, due to depleting domestic stock and limited options to augment supply, sources indicate that festival demand during October and November will rely heavily on fresh production. To safeguard the domestic market, the government may curb the diversion of sugarcane juice for ethanol at least during the first three months of the 2026-27 season, noting the timing of the festival around November 8.

The cumulative sugar allocation for the period spanning October 2025 to August 2026 stands at 245.5 lakh tonnes (lt), representing a decrease of 2.6 per cent from the 252 lt allocated in the corresponding period last year. Industry sources noted that while some mills exceeded their allotted quotas, the government has been reducing entitlements for such cases.

Diamond Jewellery Witnesses Strong Growth​

In a positive trend amid fluctuating gold prices, appetite for diamond jewellery is rising rapidly among Indians. Saumen Bhaumik, MD of Caratlane, reported that India has emerged as a major consumer market and processes nearly 90 per cent of the world's diamonds.

Currently, India ranks as the second largest consumer of diamonds globally, holding a 12 per cent market share. The country trails only the United States, which holds a 53 per cent market share, ahead of China and Japan (both at 5 per cent). The domestic natural diamond market in India is estimated at about $8 billion, which is nearly one tenth of the larger $80-$90 billion jewellery market.

Caratlane reported revenue of ₹4,690 crore for FY26, marking an increase of almost 18 per cent from FY25. Bhaumik noted that growing consumer preferences, especially among younger generations, are driving demand for the "king of gems." Strong demand is also being observed for lower carat, lightweight jewellery and companies' natural diamond in silver lines, such as Shaya.

Cotton and Commodity Projections​

The Cotton Association of India (CAI) has significantly raised its import projections for the 2025-26 season, ending September. The projection was increased by 13 lakh bales to reach a high of 60 lakh bales (of 170 kg each). This surge is attributed to the consuming sector taking advantage of the 11 per cent duty exemption, leading to record overseas purchases.

In contrast, CAI reduced the export estimate for the same period by 3 lakh bales, setting it at 15 lakh bales from earlier projections of 18 lakh bales.

Key estimates provided by CAI and industry experts are summarized below:


CAI also reported that consumption for the current season has increased by 10 lakh bales, reaching a total of 348 lakh bales, as reported by the Confederation of Indian Textile Industry (CITI).

Kerala Leverages AI for Smart Farming​

The Indian Institute of Technology, Ropar, is partnering with the Kerala government to deploy Annam.AI smart weather stations across the state. This initiative aims to strengthen climate-smart agriculture and improve farm level decision making using indigenous AI innovation.

The hyper-local weather intelligence system monitors seven critical parameters: temperature, humidity, rainfall, wind speed, wind direction, solar radiation, and soil moisture. The unique feature of these stations is their AI-powered analytics, providing high accuracy forecasts at a 3-km resolution. This allows for village level predictions and real time advisories regarding crop diseases and disaster warnings.

The deployment in Kerala serves as a model to inform national rollouts, helping India understand how mixed multilayer farms respond to hyper-local climate variations. Farmers are expected to benefit with more accurate forecasts for sowing and harvesting, timely alerts of pests and diseases, and better irrigation decisions based on real time soil moisture data.

COALINDIA Stock Price Movement​

Shares of Coal India Limited are edging higher as of 1:28 PM, trading at ₹416.85 after gaining 1.66% in active live market conditions. The stock traded within a tight range, moving between a low of ₹410.1 and an intraday high of ₹417.5 on volume exceeding 18.29 million shares.