Gem exporters eye Bangladesh, Myanmar

Indian gems and jewellery exporters will take up negotiations this month for greater market access to Bangladesh and Myanmar markets. The latter was also a source for rough coloured gemstones.

Bangladesh was one of the bigger market for gems and jewellery in the region but has high import duties.

"With 67 per cent duty on imported jewellery products, the country is a hotbed for smuggled items. Indian products are finding their way through Dubai to that country," Pankaj Parekh, convener of the jewellery panel, Gems and Jewellery Export Promotion Council (GJEPC), said.

Parekh will lead a team to Bangladesh to meet Bangladesh commerce ministry officials. According to one estimate, Rs 400 crore worth of jewellery items from India go to Bangladesh, where the total market size was around Rs 3,000 crore. Bangladesh reduced duty on diamonds to 15 per cent from 67 per cent last year.

GJEPC will visit Myanmar to increase supply of rough coloured gemstones. "There is no proper supply of such stone from Myanmar to India. We want greater participation," Parekh said.

Myanmar conducts three auctions for gemstones there but few Indian buyers participate. Myanmar stones find their way to India through Thailand.

However, Tanzania was threatening to stop export of rough coloured gemstone to India, particularly of tanazanite, a type of stone with different shades and colours, the supply of which had been stopped once in the past.

"They are more inclined to do the polishing there and export the finished product," Parekh said. Myanmar could be an alternative supply source.

Export of jewellery and cut and polished diamond grew by 66 per cent last year. Coloured gemstone exports declined seven per cent.