DTC may cut prices of rough diamonds

Diamond Trading Corporation (DTC) is expected to reduce the prices of rough diamonds when it allocates sites to Indian importers in the first week of November.

The global and Indian diamond industries are passing through an imbalance with low prices of polished diamonds, while the prices of rough diamonds are high.

Though DTC had recently said that prices are likely to remain stable in the coming months, industry sources feel that even if prices are not reduced directly, the assortments would be improved.

This means that allocation of good quality rough diamonds may be increased, effectively resulting in lower costs for the domestic diamond industry.

High prices of rough diamonds has affected diamond jewellery exporters during the year. Ironically, the heavy floods in Surat has led to a fall in export of rough diamonds, thereby protecting the bottomline of diamond exporters.

"This year's Christmas orders are good. And because of the longer-than- normal vacation in Surat, a major rough polishing centre of the country, factories will start immediately after Diwali," said Shreyas Doshi, managing director of Shrenuj & Co, which is a leading listed export company.

"India is a leading diamond exporter and it has the potential to emerge as a diamond hub. But, for this, India will have to abolish import duty on polished diamonds and simplify the taxation policy on the lines of what was done by Belgium and Israel," said Doshi.