Diamond imports from Zimbabwe are to resume, as the country has agreed to abide by the Kimberley process that certifies diamonds for any trade.
The Kimberley Process Certification Scheme was established by the United Nations in 2003 to prevent sales from financing war and human rights abuses. Zimbabwe has had a problem in this regard. It got its first Kimberley certificate in August last year and three consignments were imported. After which, these stopped, with the country unable to fulfill certain conditions.
Yesterday, it appears, the issue was resolved and the window for imports from there had re-opened. A large part of Zimbabwe’s rough diamonds will come to India for processing or polishing. Two consortiums of processors and exporters are readying to negotiate and import roughs from there, on behalf of their members.
Rajiv Jain, Chairman, Gem and Jewellery Export Promotion Council, said, “It is good that the issue with Zimbabwe has been resolved. Imports of roughs from there will provide a boost to processors in India and help provide additional work to their labour (force).”
A couple of consignments were earlier contracted and were held up at the Dubai free trade zone, pending a Kimberley certificate. These can now be released. Spokespersons of two consortiums, Diamond India ltd and Surat Rough Diamond Sourcing Company, have confirmed they’d be negotiating further imports from there.
Maintaining labour has been a big challenge for processors, as they are not able to provide enough work. In the 2008 recession, many labourers had left the industry and half of them have not returned since, finding work in the agriculture sector and textiles more rewarding. Processors raised wages a couple of weeks before but providing them more work was the issue. The Zimbabwe development will help.