Export council keen on new rough diamond sources

Gems and Jewellery Export Promotion Council (GJEPC), in association with the central ministry of commerce and industry and Minerals and Metal Trading Corporation Limited (MMTC), is trying to procure direct supply of rough diamonds from Russia and other diamond mining countries like Canada, Ghana and South Africa to reverse the decreasing supply of rough diamonds to India.

Indian diamond processors source most of their rough diamond requirements from countries like Belgium, UK, UAE, Hong Kong, USA and Thailand.

"We are trying to procure rough diamonds from Russia as a part of Russia's commitment to the Diamond Trading Company (DTC). We are also trying to initiate direct contact with other mining countries like Canada, South Africa and Ghana."

Bakul Mehta, chairman of the Gems and Jewellery Export Promotion Council (GJEPC) told Business Standard in Surat.

Import of rough diamonds fell to $406 million in November 2004 from $572 million in November 2003.

In volume terms, the import of rough diamonds fell to 106 lakh carats in November 2004 from 156 lakh carats in November 2003.

India's imports of rough diamonds fell to $4205 million in 2001-2002 from $4812 million in 1999-2000.

The picture at present is not encouraging on the rough diamond supply front and is a cause for concern for manufacturers who source rough from the open market.

Only a few privileged processors enjoy direct access to rough diamonds from producers.

There is complete dependence on the few existing sources for rough diamonds, which might hamper growth of the industry.

"Steady rough diamond supply to the industry is the greatest need of the hour and the council has made efforts in past few years, and will continue to do so in the future, to get direct supplies from mining companies", said Mehta.

GJEPC delegations have visited some countries and met mining companies. "The council's efforts in this direction will be consistent in the coming years so as to open other doors for rough sourcing from producers all over the world and it is examining possibilities of getting professional service for this purpose," added Mehta.

GJEPC is also planning to start a special cell soon to examine the feasibility of sourcing rough diamonds directly from primary producers, and also conducting a detailed study of the rough diamond supply front.